---
title: "IMF Says China Must Show It Can Play by World Debt-Revamp Rules"
description: "China, the biggest bilateral creditor to developing countries, needs to show it can operate within established international debt-relief processes for poor nations struggling to pay, the chief of the International Monetary Fund said."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-04-06-imf-says-china-must-show-it-can-play-by-world-debt-revamp-rules/"
published: "2023-04-06T17:47:29"
lang: "en-ZA"
word_count: 291
---

# IMF Says China Must Show It Can Play by World Debt-Revamp Rules

> China, the biggest bilateral creditor to developing countries, needs to show it can operate within established international debt-relief processes for poor nations struggling to pay, the chief of the International Monetary Fund said.

By Bloomberg · Published 6 April 2023, 19:47 SAST

## Key points
- Despite its involvement in the Common Framework, China has been dragging its feet when it comes to debt relief for vulnerable countries. Kristalina Georgieva visited Beijing last month and urged faster and more efficient restructuring processes.
- IMF Chief Kristalina Georgieva urges China to play by the rules of established multilateral debt restructuring.
- The Common Framework was agreed upon by Paris Club and newer lenders such as China, India and Saudi Arabia.
- China has been reluctant to grant relief, with the US accusing Beijing of delaying progress.
- Georgieva received assurances from Chinese Premier that China will play its role in Zambia's debt restructuring.

## Content

China has been very slow to recognize that multilateral debt restructuring requires China to play by the rules that are already established,” Managing Director Kristalina Georgieva said in a Bloomberg Television interview with Tom Keene Thursday. “Now is the time for China to demonstrate that they are capable of playing by these rules.”

The Paris Club of mostly western traditional creditor nations joined with newer lenders China, India and Saudi Arabia in late 2020 to agree to a roadmap called the Common Framework to restructure debt from poor countries on a case-by-case basis. But the process has been plagued by delays, and Beijing has been reluctant to grant relief.

[Read More: IMF Chief Urges Faster Debt Restructurings During Visit to China](https://www.bloomberg.com/news/articles/2023-03-30/imf-chief-urges-faster-debt-restructurings-during-visit-to-china)

Last month, Georgieva was in China, where she said the world urgently needs faster and more efficient processes for restructuring debts of vulnerable countries.

While she said that China’s engagement in the Common Framework to reorganize debt and the Global Sovereign Debt Roundtable are “very much welcome,” a number of western nations including the US, the IMF’s largest shareholder, have accused Beijing of dragging its feet in providing relief.

The issue is set to feature prominently at the IMF and World Bank Spring Meetings next week.

[Read More: ‘Lost Decade’ Looms as US-China Face Off Over Debt Relief](https://www.bloomberg.com/news/articles/2023-02-21/-lost-decade-looms-as-us-china-face-off-over-poor-world-debts)

China has prevented progress on debt talks for Zambia — which is participating in the Common Framework — with its call for loans from multilateral development banks and domestic creditors to be included in the country’s restructuring. The US and other countries have rejected such proposals.

“We have now initiated a debt restructuring for Zambia, and I got the assurances from the Chinese Premier that China would play its role,” Georgieva said.