• HobbitFoot @thelemmy.club
    link
    fedilink
    English
    arrow-up
    4
    ·
    2 months ago

    A lot of times, the IMF will lead all creditors of a country to restructure, reduce, or reschedule existing debt. What is happening is that Chinese institutions appears to be less willing to write down bad debt, holding up a lot of negotiations between debt holders. So, the debt doesn’t get reduced.

    • LibertyLizard@slrpnk.net
      link
      fedilink
      arrow-up
      2
      arrow-down
      1
      ·
      2 months ago

      Is this a bad thing somehow? I would think reducing debts is generally beneficial, especially in times of economic crisis.