debt Photo: VCG

 
Chinese observers have urged developed countries to take more responsibility in addressing the debt risks faced by some nations, rather than using China as an excuse to shirk blame, as the first virtual meeting of a new sovereign debt roundtable is about to take place on Friday.

They pointed out that there are many reasons why some countries are mired in debt - the US Fed's interest rate hikes, the global energy and food crises and other issues. They warned some in the West to share the responsibility and seek a more "fair and just" solution.  

The roundtable will include officials from countries that have requested debt treatments under the G20 framework - Ethiopia, Zambia and Ghana - as well as middle-income countries such as Sri Lanka, Suriname and Ecuador, which have faced their own debt problems, Reuters reported.

"The objective is to bring together key stakeholders involved in sovereign debt restructuring, from traditional creditors from advanced economies, to new creditors like China, Saudi Arabia, India and the private sector, and indebted countries to address the debt crisis," they said.

The roundtable comes amid growing frustration over the slow pace of discussions on debt relief for some nations. Rather than seeking a global resolution, some tried to blame it on China.

On Monday, Zambia's Minister of Finance and National Planning Situmbeko Musokotwane refuted a report by the Financial Times, saying the headline of an article published by the newspaper based on a recent interview with him "does not accurately reflect his comments or Zambia's position." 

The report hints that Musokotwane is opposed to China's call for the World Bank and other multilateral lenders to participate in Zambia's debt restructuring.

Contrary to the report, Zambia is in no position to reject any proposals between China and the World Bank, he said. The Financial Times later updated the story.

In response, Wang Wenbin, a spokesperson from China's Foreign Ministry, said on Tuesday that China believes the Zambian government and people are clear about China's positive contribution to solving its arrears, and, to the country's sustainable development.

He said that Zambia's debt restructuring requires mutual understanding, mutual trust and the joint efforts of all stakeholders to find the best solution.

China will continue to keep close communication and friendly negotiations with Zambia and other parties, while continuing to play a constructive role in solving Zambia's debt crunch, Wang said.

"China shouldn't be an excuse for the West to shirk blame over debt," Xu Liping, director of the Center for Southeast Asian Studies at the Chinese Academy of Social Sciences, told the Global Times on Tuesday.

Xu noted that the debt problems of some countries are caused by various factors such as the Fed's interest hikes, the food crisis and the global economic downturn. Among them, the Fed's aggressive interest hikes in recent times are the main reason, because they have exacerbated the debt repayment costs of the nations. 

China's loans to those countries have low interest rates and are sustainable, and China has also given some debt relief, Xu said, calling on developed economies to assume their responsibilities.

According to a letter reviewed by Reuters in January, the Export-Import Bank of China has offered Sri Lanka a two-year moratorium on its debt and said it would support the country's efforts to secure a $2.9 billion loan from the IMF.

Global Times