Thread: India working on proposal for China, other lending nations to take haircut on loans

To help debt-ridden countries in the G20 bloc who have been unable to recover from the post-pandemic economic shocks and the Russia-Ukraine war, India is drafting a proposal whereby it will call upon the credit lending nations like China to take a large haircut on loans. According to Reuters news agency, which has quoted two Indian officials, a meeting will be held in Bengaluru city of India's southern state Karnataka next week where finance ministers and central bank chiefs from the Group of 20 will assemble to hold discussions on the draft.


The gathering will be the first major event of India's one-year presidency of the G20.


It is believed that China and other G20 countries are aware that India is working on the proposal, the officials were quoted as saying. One of the Indian officials said that India is expecting United States to back its proposal.


China's Ministry of Foreign Affairs did not react on the matter when it was reached out for a comment. Its spokesperson Wang Wenbin during a news conference on Tuesday talked about the difficulties faced by countries in servicing their debts.


"China takes the debt issue of developing countries seriously and supports relevant financial institutions to put forward solutions. It is our consistent stance that multilateral financial institutions and commercial creditors, which hold the bulk of the debt of developing countries, should participate in the debt relief efforts," he said.


The proposal comes in the wake of Pakistan and Sri Lanka, two of India’s neighbours, facing one of their worst economic crises. They have been seeking international help to tide over foreign currency shortage to pay for vital imports.


Recently, India and Paris Club of creditors supported Sri Lanka's debt restructuring plan as the bankrupt nation sought a $2.9 billion loan.


China’s Export-Import Bank of China has also offered a two-year moratorium on its debt to Sri Lanka and said that it would support the country's efforts to secure an IMF programme.

India working on proposal for China, other lending nations to take haircut on given loans: Report - India News News

The G20-

G20 Countries
Argentina
Australia
Brazil
Canada
China
France
Germany
India
Indonesia
Italy
Japan
Mexico
Russia
Saudi Arabia
South Africa
South Korea
Turkey
United Kingdom
United States
European Union

Line up for your haircut boys.

Obviously they're referring to the chinky loan sharks who monopolise the debt from vulnerable nations that they've been exploiting.

^ lets hope the UK gets a 1Trn haircut

Obviously 'arry is referring to the G1 only- China!

Originally Posted by sabang

Obviously 'arry is referring to the G1 only- China!

That's what I said, can't you fucking read?