China Reconsiders Debt Restructuring as Developing Nations Face Investment Slump and Tigray Aid Suspended
IMF Chief Says China Rethinks Debt Restructuring Amid Distressed Nations
Bloomberg – China is gradually shifting its stance on debt restructuring after facing debt-ridden countries unable to pay their dues, according to the International Monetary Fund (IMF) chief, Kristalina Georgieva.
As the largest lender to developing economies, China is beginning to acknowledge the need for improved mechanisms for debt overhauls alongside traditional western creditors like the Paris Club.
Over 70 low-income countries, including Zambia, Ethiopia, and Ghana, are grappling with a total debt burden of $326 billion.
China’s increasing cooperation with the Group of Seven nations and the IMF is essential to addressing the growing importance of emerging markets.
Investment in Developing Nations May Reach 20-Year Low
Nikkie Asia: Hiroshi Matano, Executive Vice President at the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA), warns that plunging investment in developing countries, including Ethiopia, could lead to lower long-term growth and exacerbated problems.
A potential 20-year low in foreign direct investment in 2023 may result from the global economic slowdown, political instability, and high inflation reducing imports.
The situation in sub-Saharan Africa remains particularly dire, with foreign direct investment crucial for commerce and industry development in the face of a growing population.
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UN Suspends Food Aid to Tigray Amid Theft Investigation
AP: The United Nations World Food Program (WFP) has temporarily suspended aid deliveries to Ethiopia’s Tigray region due to an ongoing internal investigation into food theft.
Over 5 million people in the region depend on aid, but reports of food misappropriation prompted the suspension.
Last month, enough food to feed 100,000 people was discovered missing from a warehouse in Sheraro, Tigray.
The WFP has asked humanitarian partners to share information regarding food misuse, misappropriation, or diversion.