(June 25): China called for global measures to curb what it described as “malicious litigation” by bondholders in debt relief cases, saying such action is needed to protect a Group of 20 (G20) restructuring mechanism for poor countries struggling to repay their loans.
The statement by People’s Bank of China deputy governor Xuan Changneng, who did not identify any specific examples, is the latest sign of tension between the world’s biggest bilateral creditor and commercial lenders when it comes to negotiating debt restructuring for nations from Ethiopia to Zambia.
In Ethiopia’s case, bondholders started the process of suing the government over US$1 billion (RM4.12 billion) in defaulted notes after failing to reach a repayment…