China responds in kind to US allegations that Beijing is exacerbating the debt crisis here – The Island
Chinese financial institutions have reached out to Sri Lanka and shown full readiness to find a way to manage maturing Chinese loans and help Sri Lanka overcome difficulties, the Chinese ministry spokesperson said. Foreign Minister Zhao Lijian during his regular press conference in Beijing.
Lijian made this statement in response to a question from a world times reporter on a recent statement by the administrator of the United States Agency for International Development, Samantha Power, who said that China had provided Sri Lanka with “opaque loan agreements at rates of higher interest than other lenders” and funded infrastructure projects that often went to little use, over the past 20 years.
The world times reporter asked, “She added that China should participate in debt relief transparently and fairly with all other creditors. What is China’s comment?
Zhao Lijian said China-Sri Lanka practical cooperation has always followed the principle of being led by Sri Lanka. All cooperation projects have undergone scientific planning and thorough evaluation and are never subject to political conditions. The cooperation has contributed to the economy of Sri Lanka and brought tangible benefits to the people of Sri Lanka.
“Sri Lanka’s external debt is made up of several elements. The share of debt linked to China is much lower than that of the international capital market and multilateral development banks. In addition, China mainly provides Sri Lanka with preferential loans with low interest rates and long-term maturity, which have helped improve Sri Lanka’s infrastructure and livelihoods. Shortly after Sri Lanka’s announcement to suspend payment of international debt, Chinese financial institutions reached out to the Sri Lankan side and showed their full readiness to find a suitable way to manage overdue debts. regarding China and to help Sri Lanka overcome difficulties,” he said.
The Chinese Foreign Ministry spokesperson pointed out that the global economic and financial markets have suffered greatly from the recent sudden rise in interest rates and the reduction in the balance sheet of the United States, which quickly siphoned off dollars in more of the United States’ longstanding quantitative easing policy and irresponsible massive stimulus.
Wayward unilateral sanctions and tariff barriers by the United States have undermined the security of global supply and industrial chains and aggravated soaring prices for energy, food and other bulk commodities, a- he declared.
“This has further aggravated the economic and financial situation of developing countries, including Sri Lanka. Capital speculation from the United States and other Western countries in Sri Lanka and the manipulation of the country’s credit rating have seriously undermined Sri Lanka’s credibility and funding channels. The United States should ask itself: what has it done for the sustainable development of developing countries like Sri Lanka? What harm have the unilateral economic, financial and foreign policies of the United States caused to other countries? We hope that the United States will genuinely help Sri Lanka overcome the current difficulties, ease the debt burden and achieve sustainable development, instead of recklessly taking every opportunity to shift blame, smear others countries and advance geopolitical competitions,” he said.