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IMF, World Bank Warn Nations on Lending Money from China

WASHINGTON: The International Monetary Fund (IMF) and World Bank urged cautions regarding the rising influence of lending by China to developing nations.

The global development lenders are calling for more transparency about loan amounts and terms and cautioning governments against relying too much on debt.

During the Spring meetings of the institutions on Thursday, World Bank President David Malpass warned that “17 African countries are already at high risk of debt distress, and that number is just growing as the new contracts come in and aren’t sufficiently transparent.”

On the occasion, IMF chief Christine Lagarde said the high debt levels and a number of lenders, who do not all conform to international norms, also complicate any future efforts to restructure a country’s debt.

“We are constantly encouraging both borrowers and lenders to align as much as possible with the debt principles,” Christine said.