G7 Finance Ministers Pressure China to Join Debt Repayment Suspension for Poorest Countries Affected by COVID-19

Bloomberg "A Critical Signal Urging China's Full Participation"

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The finance ministers of the Group of Seven (G7) on the 25th (local time) supported the extension of debt repayment relief for the world's poorest countries struggling due to the impact of the novel coronavirus disease (COVID-19), effectively calling on China to join the effort.

The G7 finance ministers issued a joint statement on the day, expressing support for the extension of the debt relief plan agreed upon by the Group of Twenty (G20) countries to grant bilateral debt repayment relief for the poorest countries.

They also urged cooperation, noting that some countries classify state-owned institutions as commercial lenders and thus do not actively participate in debt relief.

The G7 finance ministers emphasized the necessity for countries not belonging to the Paris Club to fully participate in debt relief.

Bloomberg News reported that this remark appears to be aimed at China, the largest creditor country that belongs to the G20 but not to the Paris Club, describing it as "a signal of criticism toward China's incomplete participation."

The debt issue will be a central topic at the upcoming annual meetings of the International Monetary Fund (IMF) and the World Bank, which will be held virtually next month.