One of the biggest challenges for the country is simply gaining an understanding of the scope of its own lending, given the historical lack for coordination between disparate government agencies and entities, Georgieva said. While China long resisted providing relief, citing its own status as a developing country, that thinking is beginning to change, she said.
The International Monetary Fund’s chief said China is shifting its thinking about participating in debt restructuring after being confronted by countries unable to pay what they owe, signaling hope the world’s second-largest economy will help provide relief for distressed nations.
China — now the biggest lender to developing economies — has joined traditional western creditors from the Paris Club in recognizing the need to create a better mechanism for debt overhauls, Kristalina Georgieva said in an interview with Stephanie Flanders, the head of economics and government at Bloomberg News, at the Milken Institute Global Conference in Beverly Hills, California.
