The Common Framework was set up by the G20 in late 2020 during the COVID-19 pandemic as an initiative to expedite and simplify the process of gettingThe aim was to bring together big creditors like China and the traditional group of developed creditor nations, known as the Paris Club, to negotiate restructuring plans with defaulters.
The US and European governments have argued that acceding to Beijing’s demand would be tantamount to a bailout for China. China continues to negotiate with debtor nations on a bilateral basis, urging that debt disposal be dealt with on a “case-by-case” basis despite the Common Framework’s aim to standardize access to debt relief.
“We call on multilateral financial institutions and commercial lenders, who are the main creditors for developing countries, to participate in developing countries’ debt relief efforts,” Mao said.In January, China’s Foreign Minister Qin Gang announced a partial and undisclosed cancellation of the $13.7 billion that Ethiopia has borrowed from China since 2000 while visiting Addis Ababa.