IMF urges creditors to agree sharing of bailout burdens

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Financial Times  | Fri, Jan 18, 2019

by Delphine Strauss

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A growing risk of debt distress in low-income nations has made it crucial that countries agree how any bailout burden should be shared, a senior IMF official warned on Friday.

The comments, in a blog by Martin Muehleisen, director of the IMF’s strategy, policy and review department, reflect deepening concern over a build-up of opaque Chinese lending to developing countries.

The Chinese loan build-up has made it difficult for the IMF to judge whether a country’s debt is sustainable, and even harder to win creditor countries’ backing for a bailout, since there is no mechanism for Beijing to play its part.

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