BERLIN: Germany and China expressed mutual support for the G20 debt restructuring framework for impoverished nations during a financial dialogue held in Frankfurt over the weekend.
In a joint statement, the two nations welcomed China’s commitment to the initiative, acknowledging the pivotal role China plays in global politics and its significance in finding viable solutions.
The specifics of the restructuring plan were not disclosed in the joint statement, and further details about the rules of the plan remain undisclosed. However, it was reported earlier that China was considering dropping its demand for multilateral development banks to share losses from restructuring sovereign debt of poor countries with other creditors.
Germany, along with some other nations, had urged China to make concessions to expedite the debt restructuring process. China’s substantial role as a creditor for many heavily indebted countries in Africa and Asia underscores the importance of its cooperation in these efforts.
Germany and China to Expand Market Access Opportunities
In addition to debt restructuring, Germany and China emphasized their commitment to expanding market access opportunities for both countries. German Finance Minister Christian Lindner highlighted the significance of responsible trade and investment, stating, “This creates opportunities for more responsible trade and investment on both sides.”
The dialogue, which included senior representatives from central banks, regulatory agencies, and business sectors, marked the third Berlin-Beijing Financial Dialogue. Notably, for the first time in the history of the financial dialogue, a financial roundtable involving representatives from key financial institutions and private companies was established.
Lindner proposed increasing the frequency of financial dialogues between China and Germany, suggesting annual meetings instead of the current biennial schedule. He emphasized the importance of quicker progress in financial matters, stating, “In politics, two years is a long time, but in financial matters, two years is an eternity.”
