What’s wrong? China Gives Forgiveness Of This Country Debt

Jakarta, CNBC Indonesia – The Chinese government said it would provide debt repayment relief to developing countries that took out loans from Beijing. Unmitigated, the total relief provided reached US $ 2.1 billion, equivalent to Rp.29.7 trillion.

Reporting from CNA Friday (20/11/2020), Chinese Finance Minister Liu Kun said the relief was needed by some debtors in Africa because they were currently experiencing slowing economic growth and needed a lot of funds to improve the state of their country which was hit by the Covid-19 pandemic.

The relief is provided in the form of the latest G20 Service Deferral of Accounts (DSSI) to ward off investment problems that are needed in the future.

Beijing’s official bilateral creditors such as the China International Development Cooperation Agency, state aid agencies, and the Export-Import Bank of China have suspended debt payments from 23 countries, totaling US $ 1.353 billion (IDR 19 trillion), Liu said in a statement on the website. ministry website.

“The Development Bank of China, as a commercial creditor, signed an agreement with developing countries involving US $ 748 million (Rp 10 trillion) at the end of September,” said Liu.

However, this relaxation is smaller than the debt of developing countries that must be paid by China. The World Bank study shows the official bilateral debt of the poorest countries to G20 countries reached US $ 178 billion (IDR 2,526 trillion) in 2019, with 63 percent of the total debt to China, a World Bank study showed.

Meanwhile G20 countries including China and the United States have offered financial assistance to countries in the world with financial problems, with the majority being in Africa. This assistance will be provided at least until mid-2021 to help accelerate the response to Covid-19 and attract post-pandemic economic growth.

[Gambas:Video CNBC]



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