US Urges Action on ‘Generational’ Debt Risks, Call Out China
- Treasury official warns poor countries pay too much for debt
- All creditors, including private lenders, must provide support
Beijing has emerged as a massive creditor to developing economies over the past decade as part of Xi’s Belt and Road Initiative, which focused mainly on Chinese-built infrastructure.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
The world’s largest creditors should take coordinated and decisive action to address the “generational challenge” of poorer nations struggling with unmanageable debt burdens, a top US Treasury official said, aiming specific criticism at China, the biggest lender to emerging markets.
Jay Shambaugh, US Treasury undersecretary for international affairs, set out in a speech Thursday the US vision for international finance that calls on official and private creditors, as well as international financial institutions.