The finance ministers of the G20 countries have not reached a breakthrough in recent days on canceling the debts of poorer countries. China and Western countries in particular disagree.
Several countries have run into financial problems in recent years. Rising interest rates drove up their borrowing costs. At the same time, prices for things like food and fuels have risen over the past year, mainly due to the war in Ukraine.
Countries such as Zambia, Sri Lanka, Ghana and Ethiopia would therefore benefit from their creditors canceling part of the debt.
But China does not want that, unless the World Bank also no longer claims part of its loans. The institution believes that this cannot be the case. According to the World Bank, it would lose the ability to respond to crises.
The United States supports the World Bank, which China sees as an extension of the Americans.
‘Continue talks in April’
Outgoing World Bank president David Malpass thinks progress has been made at the G20 meeting in Bengaluru, India. “We can build on points we agree on and see what else we can do.”
According to the American, the spring meetings of the International Monetary Fund and the World Bank in April are good times to continue the talks.