Kant: Debt risk rises as China doesn't play ball

Mumbai: Amitabh Kant, the country’s ‘Sherpa’ for G20, said there was no consensus on addressing the debt of emerging markets as China refused to be a party. Kant said that China, a creditor to many countries, had refused to join hands with IMF and World Bank for a debt deal and said that it would negotiate with its debtors bilaterally.

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“That is one of the biggest challenges the world faces today. If countries start falling and their currencies start falling, there will be a huge cascading effect from all this,” said Kant. He was responding to a question from the SBI chairman Dinesh Khara.

Kant said that China’s debt conditions were so opaque that some recipient countries were unaware of the conditions. In some cases the terms of the debt could not be shared with Parliament.