NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

Germany welcomes China's support for G20 debt restructuring framework

Published 10/01/2023, 08:56 PM
Updated 10/01/2023, 09:00 PM
© Reuters. FILE PHOTO: German Finance Minister Christian Lindner speaks during a session of the lower house of parliament, Bundestag, at the Reichstag building, in Berlin, Germany September 27, 2023. REUTERS/Liesa Johannssen/File Photo

BERLIN (Reuters) -Germany has welcomed a show of support from China for the G20 debt restructuring framework for poorer countries in a joint statement after their financial dialogue in Frankfurt over the weekend.

"We welcome the fact that the Chinese side is also committed to this in our Joint Statement, because solutions are inconceivable without China as such an important player in world politics," German Finance Minister Christian Lindner said on Sunday, after his meeting with Chinese Vice Premier He Lifeng.

Neither provided further details on the rules for the restructuring plans and the joint statement did not give specifics.

A source told Reuters in April that China had been expected to drop its demand for multilateral development banks to share losses alongside other creditors in sovereign debt restructurings for poor nations.

It was not immediately clear on Sunday whether that had happened.

Some countries such as Germany have argued that with China being by far the largest creditor for many highly indebted countries in Africa and Asia, Beijing should make concessions to speed debt restructuring.

During Sunday's talks, Germany and China also showed their determination to expand market access opportunities between both countries.

"This creates opportunities on both sides for more responsible trade and investment," German Finance Minister Christian Lindner said on Sunday.

China is willing to work with Germany to further "mutually beneficial" cooperation, and inject more "positive energy" into their partnership, the official Xinhua news agency reported on Sunday, citing He.

High-ranking representatives of the countries' central banks and supervisory authorities attended the third financial dialogue between Berlin and Beijing, as well as companies' representatives.

"It is important for me to emphasise that for the first time in the history of the Financial Dialogue we have established a Financial Roundtable with representatives of important financial institutions and private companies," Lindner said.

© Reuters. FILE PHOTO: German Finance Minister Christian Lindner speaks during a session of the lower house of parliament, Bundestag, at the Reichstag building, in Berlin, Germany September 27, 2023. REUTERS/Liesa Johannssen/File Photo

Lindner proposed to increase the frequency of financial dialogues between China and Germany, to have these meetings annually instead of every two years, as both countries want faster progress. “In politics, two years is a long time, but in financial matters, two years is an eternity,” Lindner said.

The meeting took place in Frankfurt, as Germany want to further strengthen this city as an European hub for financial services, the finance minister said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.