IMF pushes China, G20 economies to speed up debt relief

The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, has warned against complacency on global debt problems. Georgieva is asking China and other Group-of-20 economies to speed up debt relief for a growing number of heavily indebted countries, warning that failure to do so could unleash a damaging “downward spiral”. Western officials are stepping up criticism of the G20 Common Framework process after nearly two years of glacial progress blamed largely on foot-dragging by China, the world's largest sovereign creditor, and private sector creditors. Georgieva said almost a third of emerging market countries and twice that proportion of low-income countries were in debt distress, with the situation worsening as advanced economies raised interest rates.