The head of the U.S. government aid agency called on China on Wednesday to help Sri Lanka and other nations that had borrowed heavily from Beijing with debt restructuring, not just with lines of credit and emergency loans. Several countries in Africa and Asia were similarly hoping that their calls for restructuring debt would be answered. Sri Lanka is bankrupt and has suspended repayment on its $51 billion foreign loans. AdvertisementThe government is in the process of preparing a debt restructuring plan, a condition for a rescue package it is negotiating with the International Monetary Fund. China, which accounts for 10% of Sri Lanka’s debt, has resisted offering a debt cut.

Source: thestar July 28, 2022 02:58 UTC