Germany welcomes China’s support for G20 debt restructuring framework

BERLIN, Oct 1 (Reuters) – Germany welcomed China’s support for the G20 debt restructuring framework for poor countries in a joint statement after the weekend’s financial dialogue in Frankfurt.

“We welcome the fact that the Chinese side has also committed to this in the joint statement, because without China as an important player in world politics, we cannot do anything without China,” German Finance Minister Christian Lindner said Sunday after a meeting with the Chinese vice minister. Because I can’t think of a solution.” Premier He Lifeng.

Both include rules for reorganization plans, Joint statement Details were not disclosed.

Sources told Reuters in April that China was expected to withdraw its demands for multilateral development banks to share losses alongside other creditors in poor countries’ sovereign debt restructurings.

It was not immediately clear as of Sunday whether that happened.

Some countries, including Germany, argue that Beijing should make concessions to speed up debt restructuring because China is by far the largest creditor of many highly indebted countries in Africa and Asia.

At Sunday’s talks, Germany and China also expressed their determination to expand market access opportunities between the two countries.

“This creates opportunities for more responsible trade and investment for both sides,” German Finance Minister Christian Lindner said on Sunday.

China intends to work with Germany to further advance “mutually beneficial” cooperation and inject more “positive energy” into the partnership between the two countries, state-run Xinhua news agency reported on Sunday, citing He.

The third financial dialogue between Berlin and Beijing was attended not only by representatives of companies, but also by senior officials from central banks and supervisory authorities of various countries.

“It is important to emphasize that for the first time in the history of financial dialogue, we have established a Financial Roundtable with representatives of important financial institutions and private companies,” Lindner said.

Lindner proposed increasing the frequency of financial dialogue between China and Germany, holding it every year instead of every two years, as both countries want faster progress. “Two years is a long time in politics, but two years is an eternity in fiscal matters,” Lindner said.

The meeting was held in Frankfurt because Germany wants to further strengthen the city as a hub for financial services in Europe, the finance minister said.

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