UPDATE 1-China Says It Has Provided $ 2.1 Billion Of Debt Relief To Poor Countries

(Add debt figures, background)

BEIJING, Nov 20 (Reuters) – China has extended debt relief to developing countries worth a combined $ 2.1 billion under the G20, the highest among the group’s members in terms of deferred amount, The country’s Finance Minister Liu Kun said on Friday.

Liu’s comments come as African countries, hit by the COVID-19 pandemic, face another debt crisis and will need more long-term help than the latest G20 Debt Service Suspension Initiative (DSSI). It offers them to avoid problems and keep a lot- the necessary investments come.

The China International Development Cooperation Agency, the country’s aid agency, and the Export-Import Bank of China, the official bilateral creditors, have suspended debt service payments for 23 countries, totaling of $ 1.353 billion, Liu said in a statement on the website.

The China Development Bank, as a trade creditor, signed deals with developing countries for $ 748 million in late September, Liu said.

However, that is minimal compared to the debt that developing countries have with China. The official bilateral debt of the poorest countries to the G20 countries reached $ 178 billion in 2019, with 63% of the total owed to China, a World Bank study showed.

A third of the $ 30.5 billion of public debt service payments owed in 2021 by DSSI eligible sub-Saharan African nations is owed to official Chinese creditors, while an additional 10% is tied to the China Development Bank , according to the Institute of International Finance.

The United States, China and other G20 countries have offered the world’s poorest countries, many of which are in Africa, relief until at least mid-2021 and will decide if another six-month extension is needed in April next year.

Liu said China was willing to step up financial aid to developing countries and that more support will be provided to those most affected by the pandemic and under great pressure, and will also prioritize the supply of the COVID-19 vaccine. to poor economies.

China will also consider donating to a multilateral debt relief facility if the World Bank decides to establish one, Liu said.