Which major creditor opposes a new debt freeze?

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China Opposes New Debt Freeze for Low-Income Countries

China, identified as the world's largest creditor, has expressed opposition to a new freeze on debt service payments for low-income countries. This stance contrasts with calls from international bodies for expedited debt restructuring processes. The G20 leaders' communique, seen by Reuters, indicated a commitment to implementing the Common Framework on Debt Treatments and emphasised private sector involvement, but notably omitted any mention of a new debt standstill.
China's Position on Debt Service Payments

China, holding 65 per cent of official bilateral debt, has been a key opponent of implementing a new freeze on debt service payments. This position has contributed to the stalled progress in addressing the debt challenges faced by the poorest nations.
World Bank President's Call for Action

World Bank President David Malpass urged G20 leaders to accelerate efforts in debt restructuring for low-income countries. He highlighted that progress has been slow and stressed the need for a debt payment freeze and mandatory participation of private creditors to revitalise the process.
Broader Economic Challenges for Developing Nations

Developing nations are grappling with multiple issues hindering their economic recovery. These include the ongoing Covid-19 pandemic, vaccine scarcity, rising inflation, energy shortages, and disruptions to supply chains, all of which exacerbate their debt burdens.
Impact of Rising Debt on Development

The debt of low-income countries has increased by 12 per cent during the pandemic, severely limiting their capacity for essential investments. This situation is leading to devastating reversals in development, with rising poverty rates and increased fragility observed in numerous countries.

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Which major creditor opposes a new debt freeze?

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