LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

OBOR often leaves countries with 'excessive debt' and 'poor-quality' projects: US

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Thu, Dec 13, 2018
09:20 pm
PTI
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

China's ambitious 'One Belt, One Road' (OBOR) initiative often leaves countries with "excessive debt" and "poor-quality" projects, the Trump Administration told lawmakers, asserting that the US is seeking debt transparency from the Chinese.

Treasury Secretary Steven Mnuchin has pushed forward an initiative on debt transparency that will, in the near term, significantly increase public disclosure and broaden the existing definition of international debt beyond traditional bonds and loans, David Malpass Under Secretary of Treasury for International Affairs told lawmakers during a Congressional hearing Wednesday.

"This will help push back on China's over-lending to fragile developing nations, including those with weak governance," he said during a hearing on 'Evaluating the Effectiveness of the International Financial Institutions' by the House Financial Services Committee.

"We engaged repeatedly with China on our trade and investment concerns and the problems caused by their 'One Belt, One Road' initiative, which often leaves countries with excessive debt and poor-quality projects," he said.

If countries default on these debts, China often gains influence over the host government and may take ownership of the underlying assets, he said.

As such the US has built a common awareness of these concerns in the G7 and G-20.

"In lending, China often fails to adhere to international standards in areas such as anti-corruption, export credits, and finding coordinated and sustainable solutions to payment difficulties, such as those sought in the Paris Club," he said.

In the last two years, he said, the US has increased its efforts to sensitising the world on this and having a shared discussion with other G7 countries on how they are going to deal with this where all countries are doing business around the world, and yet the second biggest country in the world is not using the same principles.

"That is discussed and it's actually discussed also in the G20, which includes China," Malpass said. "It is interesting to have a discussion like this with China right there, and China often recognises that it does have things that it needs to change in this regard as well." One thing is to have a meeting of the minds of countries around the world that there is a big challenge when the world's second biggest economy is nonmarket, he said. "So and then as a practical matter, how do we get them to come toward the world in a number of standards areas?" he said, adding that one of those is the OECD has an anti-bribery standard.

Citing Congo, he said China has lent a lot of money with nontransparent terms so that often sometimes the country itself doesn't know what the terms of the loan are or who signed the loan, what the commitments were that were made, and whether there was corruption underneath it.

"We're working specifically on the Congo, Brazzaville to reduce its debt, but it turns out most of its debt is to China, and China won't disclose or has not been willing to fully disclose what that debt is. Those discussion take place both in the Paris Club, and also there's a separate discussion that's the International Working Group," he said.

"But they sit around in a room and pressure China to disclose debt, and we're at the point where -- in fact, there's a Paris Club meeting going this week in Paris where we will be making clear to China that they can't come to meetings. They're going to be excluded from meetings if they're not participating. So those are some of the initiatives that we've got going," Malpass said.

Responding to a question, Malpass said that in Djibouti, China tool physical possession of land as payment for the debt. Another country that's currently having debt difficulties, Gabon, which is trying to work out the terms with China.

"Within the international law sphere, though, there is the difficulty of if there's not a bankruptcy process or there's not a debt-lowering process, the lender can claim rights, which is what China has been doing, and that's what we're working hard, he said.

Mnuchin, he said, has launched a powerful global initiative to force transparency of debt.

"Our first step in getting a resolution of this is to work -- get the IMF and the World Bank to work with countries to make sure that they're aware of the debts that they're taking on and then have a methodology for dealing with those debts, which they often don't have right now," he said.

 

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

LATEST NEWS

7th Pay Commission: Salary up to Rs 1.77 lakh plus DA, HRA; check details at nta.nic.in - Delhi University Recruitment 2021

Yes Bank Share price: This is what Choice Broking highlights

SBI SME Gold Loan: Get this SBI business loan up to RS 50 lakh at 'attractive' rate without any financial document

PUBG Mobile 1.3 beta update: APK download link for global version - Check all details here!

RBSE exam 2021: Rajasthan Board Class 10, 12 date sheets released on rajeduboard.rajasthan.gov.in | Here is how to download

Irdai asks health, general insurers to bring standard accident cover from Apr

MTAR Technologies IPO date: Issue opens on March 3, 2021 I Details here highlighted by Axis Securities

Salman Khan, Katrina Kaif, Emraan Hashmi attend puja before ''Tiger 3'' goes on floors

Assembly Election Dates 2021 Announced - 5 noteworthy changes by Election Commission for polls in 4 states and 1 UT - West Bengal, Tamil Nadu, Assam, Kerala and Puducherry

Gold, Rupee and Equity Markets outlook I Explained by ICICI Securities

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved