China's rise and the reshaping of sovereign debt relief.

China has become the world's largest bilateral creditor to low- and middle-income countries, and yet its participation in collective debt-relief frameworks led by western multilateral institutions—the International Monetary Fund, the World Bank and the Paris Club—has not met those institutions' expe...

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Publicado en:International Affairs Vol. 99; no. 4; pp. 1755 - 1776
Autor principal: Chen, Muyang
Formato: Artículo
Publicado: Oxford University Press / USA Jul2023
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: China's rise and the reshaping of sovereign debt relief.
      aug:
        au: Chen, Muyang
      su:
        China
        Public debts
        External debts
        Investors
        Debt relief
        Debt cancellation
        Middle-income countries
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        subj:
          Public debts
          External debts
          Investors
          China
          Bond and income / dividend funds - foreign
          Public Finance Activities
          Debt relief
          Debt cancellation
          Middle-income countries
      keyword:
        debt relief
        development finance
        global governance
        international regime
        debt relief
        development finance
        global governance
        international regime
      ab: China has become the world's largest bilateral creditor to low- and middle-income countries, and yet its participation in collective debt-relief frameworks led by western multilateral institutions—the International Monetary Fund, the World Bank and the Paris Club—has not met those institutions' expectations. Prevailing discussion perceives China's 'reserved' participation as free-riding on or contesting the international sovereign debt regime. This article advances ongoing discussion by drawing a historical parallel between China's current debt-relief approach and that of the United States and the multilateral institutions during and after the debt crisis of the 1980s. The article finds that towards the end of the 1980s, the US transitioned from practicing a new money approach—continued financing for existing projects—to a haircut approach—increasingly writing off debts. Around the same time, multilateral institutions started to become more acceptive of debt forgiveness. Yet China's policy banks, the main financiers of its overseas projects, have been primarily practising a commercially oriented, new money approach. China's rise has therefore revitalized an approach that western private banks once commonly practised and weakened the current international sovereign debt regime that took shape in the post-1980s decades.
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    language: English
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