China attaches great importance to debt relief for developing countries: Foreign Ministry
Published: Feb 28, 2023 10:33 PM
Foreign Ministry Spokesperson Mao Ning Photo: Ministry of Foreign Affairs

Foreign Ministry Spokesperson Mao Ning Photo: Ministry of Foreign Affairs

China attaches great importance to  debt relief for developing countries and will continue to work with international society to provide necessary support to the best of its capabilities to related countries facing financial hardship, Mao Ning, a spokesperson from China's Foreign Ministry said on Tuesday. 

Mao made the remarks on questions over a Sri Lanka loan pledge with the IMF and Ethiopia's debt restructuring issues.

The Export-Import Bank of China has provided Sri Lanka with a letter supporting the sustainability of Sri Lanka's debt, expressing its willingness to extend the debt due in 2022 and 2023, which help Sri Lanka ease its short-term debt pressure.

The bank also noted that it will support Sri Lanka in its loan application to the IMF, and the bank will continuously call on commercial creditors to provide debt treatment in an equally comparable manner, and encourage multilateral creditors to do their utmost to make corresponding contributions.

Mao noted that China's approach to the Sri Lanka debt issue is in accordance with China's established policy but also reflected China's long-standing friendly ties with Sri Lanka. And the special arrangement demonstrated China's sincerity and action to support Sri Lanka's effort to achieve debt sustainability.

Mao said China will continue to work with related institutions to structure debt treatment. China will work with relevant countries and international financial institutions to jointly play a positive role in helping Sri Lanka navigate the situation ease its debt burden and achieve sustainable development.

Sri Lanka's Ambassador to China Palitha Kohona said that Sri Lanka's largest creditors are international financial organizations like the World Bank and the Asian Development Bank, and a substantial amount is also owed to other institutional investors from the West, including Wall Street.

Mao said she was not aware of the described debt issues concerning Ethiopia and referred to the competent authority for the question.

As a principle, Mao said China attaches great importance to the debt issues of developing countries and will lend necessary support to those hit by actual difficulties to the best of capabilities.

Mao called for more forceful measures by developed countries and multinational financial 

On Monday, Mao also noted that China will continue to play a constructive role in helping resolve Zambia's debt woes.

On Friday, China's finance minister Liu Kun said at a meeting of G20 finance ministers and central bank chiefs in Bengaluru, India via video that China has ramped up input in implementing the Global Development Initiative and made contributions to boost up resources of global development.