Africa Seen Getting More Debt Relief From China Than Bondholders
- China has restructured $15 billion of loans to Africa
- Private creditors reluctant to join global debt-relief push
A completely deserted Boulevard du 30-Juin in Kinshasa, Democratic Republic of Congo, on April 25.
Photographer: Samir Tounsi/AFP via Getty Images
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African countries may get debt relief from China more easily than private creditors amid a global push to blunt the economic impact of the coronavirus pandemic on poor nations, a Johns Hopkins University study shows.
China has written off $3.4 billion and restructured or refinanced about $15 billion of debt in Africa over the past decade without slapping penalties or seizing assets from borrowers, it said. The study was released a day after Chinese President Xi Jinping vowed to cancel interest-free government loans and rework some commercial obligations of African countries.