China has suspended the repayment of debts worth $2.1 billion from 24 nations. Chinese Finance Minister Liu Kun stated that the China International Development Cooperation Agency and the Exim Bank of China suspended the debt repayment worth $ 1.353 billion while China Development Bank suspended debt repayments worth $ 748 million.
It is estimated that small and developing countries owe China in excess of $7.2 billion of for which a repayment moratorium has been opened since May 2020.
The debt suspension comes following the unanimous decision by the G 20 which includes China, to suspend the repayment of debts by 73 of the world’s poorest countries in a bid to alleviate the economic losses caused by the COVID-19 pandemic. Though only a third of its debt repayment is suspended, Chinese Finance Minister Liu Kun stated that China is open to contribute more if international creditors such as the world bank is open to exploring various options in providing support for the poor countries.