China to rattle sovereign debt battles

摘要

Extensive lending by China to countries in emerging markets looks set to complicate the next wave of sovereign debt restructuring, particularly as the country has yet to join the Paris Club of official sector creditors. Venezuela, a prime candidate for a debt restructuring, said earlier this month it was already in negotiations with China about restructuring an estimated US$50bn of bilateral liabilities. But the nature of any deals between China and its creditors remain opaque, meaning other creditors may be reluctant to start their own discussions.