Yellen, in Paris, pushes for progress on debt restructuring

Washington plans another “push” Thursday for
creditors to grant relief and restructure debts of poor and developing
countries, according to US Treasury Secretary Janet Yellen.

“At this summit, the United States will continue to push for the full and
speedy participation of all bilateral creditors in debt negotiations,” Yellen
said, in remarks prepared for a news conference in Paris.

“A key pillar of economic stability is debt sustainability,” said Yellen,
adding, “the international community must come together to support countries
that are currently in crisis.”

The remarks were ahead of a summit organized by French President Emmanuel
Macron aimed at building a “new consensus” among nations that combines
tackling poverty with confronting climate change.

China, a major global creditor, has come under scrutiny for its lack of
participation in multilateral efforts to ease the debt burden on developing
countries.

Yellen remarked that she was “encouraged” by progress on Zambia, saying she
hoped debt treatment for the African country “can move forward soon.”

She also highlighted Ghana and Sri Lanka as countries that should receive
“timely debt treatment in line with their financing assurances.”

Zambian President Hakainde Hichilema on Wednesday expressed confidence his
government will secure a debt restructuring plan at the Paris gathering.

Yellen also said she would continue to seek support for an “evolution
initiative” for the World Bank to steer additional resources to combatting
climate change.

The World Bank should “develop a framework and principles for the targeted
use of concessional resources — so that financing to address global
challenges is deployed to where it has the highest impact,” she said.

“We would also like to see the World Bank offer borrowers the option to add
climate-resilient debt clauses to their loan agreements.”

A hundred countries are expected at the two-day gathering on Thursday,
including 50 heads of state.

“I can feel it as I receive confirmation of participation and messages from
our partners,” Macron tweeted Wednesday. “We can make a huge difference for
the plant and against poverty.” (BSS/AFP)