The Economist reports that 21 poor countries are either in default or awaiting loan restructuring. Chinese bilateral lending has grown rapidly over the past decade and now accounts for almost half of all government credits to poor countries. While multilateral official lenders have pushed for a coordinated debt-restructuring process, China has refused to write down the value of its loans. It would prefer simply to roll over poor countries’ debt by loading them up with more. Moreover, linking Paris Club membership to other contentious issues – such as reviving the World Trade Organization’s dispute-resolution mechanism – would increase welfare globally.

Source: Ethiopian News April 22, 2023 14:15 UTC