China strikes debt deals with poor nations under G20 scheme

(Financial Times) - China says it has struck agreements with half of the 20 low-income nations that have requested debt restructurings as part of their efforts to tackle the coronavirus pandemic. “Work on this is progressing well,” the Chinese foreign ministry said, adding that the World Bank and major developed nations still held most of the debt of a number of heavily indebted countries. Beijing is negotiating under a G20-led debt standstill scheme for low-income countries launched in April, in a move designed to help them focus on tackling the health and economic crises triggered by the pandemic. The scheme, known as the Debt Service Suspension Initiative, allows eligible countries to freeze bilateral loan repayments until the end of the year.