China must show it can play by world debt-revamp rules: IMF chief

The Chief of the International Monetary Fund has said that China has been very slow to recognize multilateral debt restructuring requires China to play by the rules that are already established.

In a televised interview, Managing Director Kristalina Georgieva said, now is the time for China to demonstrate that they are capable of playing by these rules.

China, the biggest bilateral creditor to developing countries, needs to show it can operate within established international debt-relief processes for poor nations struggling to pay.

China has prevented progress on debt talks for Zambia which is participating in the Common Framework with its call for loans from multilateral development banks and domestic creditors to be included in the country’s restructuring.

The issue is set to feature prominently at the IMF and World Bank Spring Meetings next week.