Germany welcomes China’s support for G20 debt restructuring framework
BERLIN, Oct 1 (Reuters) – Germany has expressed its satisfaction with China’s endorsement of the G20 debt restructuring framework for poorer countries. The announcement came in a joint statement following a financial dialogue between the two nations in Frankfurt over the weekend.
German Finance Minister Christian Lindner lauded China’s commitment to the framework, highlighting the country’s integral role in global politics. “We welcome the fact that the Chinese side is also committed to this in our Joint Statement because solutions are inconceivable without China as such an important player in world politics,” Lindner said after his meeting with Chinese Vice Premier He Lifeng.
However, neither Lindner nor He provided further details regarding the rules for the restructuring plans. The lack of specifics in the joint statement raised questions about the extent of China’s concessions in sharing losses alongside other creditors in sovereign debt restructurings for poor nations.
Germany and other nations have urged China, being the largest creditor to many highly indebted countries in Africa and Asia, to make concessions to expedite the debt restructuring process.
In addition to debt restructuring, the talks between Germany and China also focused on expanding market access opportunities. Lindner emphasized that this would promote responsible trade and investment between both countries. China’s official Xinhua news agency reported that China is willing to work with Germany to enhance “mutually beneficial” cooperation and inject more “positive energy” into their partnership.
The financial dialogue saw the participation of high-ranking representatives from central banks, supervisory authorities, and companies from both countries.
Lindner proposed an increase in the frequency of financial dialogues, suggesting annual meetings instead of biennial ones, reflecting the need for faster progress in financial matters. “In politics, two years is a long time, but in financial matters, two years is an eternity,” Lindner remarked.
The meeting took place in Frankfurt, as Germany aims to bolster the city’s position as a European hub for financial services.
Reporting by Maria Martinez; Additional reporting by Ryan Woo in Beijing; Editing by Alison Williams and Stephen Coates