China’s response not encouraging on G20 common framework for debt – source

GANDHINAGAR, India – China has not given an encouraging response so far on reaching a common understanding with the G20 bloc on the issue of restructuring the debt of vulnerable countries, a source aware of the matter said on Sunday.

G20 nations are also not keen on a one-size-fits-all rule to restructure such countries’ debt, the source said on condition of anonymity.

Financial leaders from the Group of 20 major economies are meeting in India’s Gandhinagar over the next two days to discuss, among other things, the debt treatment of countries under the so-called Common Framework – a G20 initiative to help poor countries delay their debt repayments.

Last month, Zambia struck a deal to restructure $6.3 billion in debt owed to governments abroad including China, in what was seen as a breakthrough for vulnerable nations in crisis.