DEVEX | Will China help resolve lower-income countries’ debt crisis?

Published on : 11.02.23

By: Ishac Diwan, 

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By Ishac diwan & Shang-Jin Wei

China

It is by now clear that many low- and middle-income countries will have to restructure their debt, but that creditors heterogeneity, among other factors, will make this difficult. Indeed, more than two years after they started, negotiations with Zambia have not yet been completed. Delays are discouraging countries that need a restructuring from coming forward, hurting their development prospects. Among official creditors, China is the largest, and it has an interest and responsibility in having an orderly process in place.