AVN 51.24 Increased By ▲ 2.18 (4.44%)
BAFL 28.67 Increased By ▲ 0.12 (0.42%)
BOP 3.62 Decreased By ▼ -0.01 (-0.28%)
CNERGY 3.27 No Change ▼ 0.00 (0%)
DFML 10.74 Decreased By ▼ -0.06 (-0.56%)
DGKC 52.60 Increased By ▲ 0.62 (1.19%)
EPCL 43.90 Increased By ▲ 0.30 (0.69%)
FCCL 12.41 Decreased By ▼ -0.01 (-0.08%)
FFL 6.20 Increased By ▲ 0.04 (0.65%)
FLYNG 5.99 No Change ▼ 0.00 (0%)
GGL 10.30 Increased By ▲ 0.04 (0.39%)
HUBC 68.66 Increased By ▲ 0.16 (0.23%)
HUMNL 5.84 No Change ▼ 0.00 (0%)
KAPCO 22.60 Decreased By ▼ -0.05 (-0.22%)
KEL 1.84 Increased By ▲ 0.01 (0.55%)
LOTCHEM 29.50 Increased By ▲ 0.60 (2.08%)
MLCF 28.70 No Change ▼ 0.00 (0%)
NETSOL 81.35 Increased By ▲ 4.45 (5.79%)
OGDC 79.90 Increased By ▲ 1.50 (1.91%)
PAEL 9.76 Increased By ▲ 0.09 (0.93%)
PIBTL 4.31 Increased By ▲ 0.10 (2.38%)
PPL 61.65 Increased By ▲ 1.16 (1.92%)
PRL 14.43 Decreased By ▼ -0.05 (-0.35%)
SILK 1.10 Increased By ▲ 0.04 (3.77%)
SNGP 42.98 Increased By ▲ 0.48 (1.13%)
TELE 7.22 Increased By ▲ 0.12 (1.69%)
TPLP 13.21 Increased By ▲ 0.44 (3.45%)
TRG 99.00 Increased By ▲ 2.87 (2.99%)
UNITY 15.40 Increased By ▲ 0.17 (1.12%)
WTL 1.19 Increased By ▲ 0.01 (0.85%)
BR100 4,190 Increased By 29.8 (0.72%)
BR30 14,589 Increased By 182.3 (1.27%)
KSE100 41,904 Increased By 217.8 (0.52%)
KSE30 14,804 Increased By 61.5 (0.42%)
Follow us

DAKAR: U.S. Treasury Secretary Janet Yellen on Saturday underscored the urgent need to reduce the debt burden of heavily indebted countries, warning that failure to do so would set back development in poor countries and couldlead to more war, fragility and conflict.

Yellen told reporters traveling with her in Africa that she and other U.S. officials had gone through "many details of this debt overhang situation" during her meeting with Chinese Vice Premier Liu He in Zurich on Tuesday.

She said she believed Chinese officials understood theimperative to reduce the debts of some of these countries, but declined to forecast what China would ultimately do, and when.

Yellen, long critical of the pace of China's efforts on debt treatments for Zambia and other countries, on Friday called again for China and other countries to provide "timely,""comprehensive" and "meaningful debt relief to help countriesregain their footing."

Yellen said U.S. officials expressed specific concern about Zambia, whose debt restructuring effort under the Group of 20 Common Framework has taken much longer to resolve than expected. Yellen will visit Zambia next week.

"It's important for the entire world that we not allow low-income countries to slide into economic disorder," Yellen said, noting that the goal of raising living standards in Africa enjoyed bipartisan support in the United States.

US, Africa histories ‘intimately connected’ by slavery: Yellen

Failure to act would result in negative spillovers, including conflict, fragility, war, terrorism and migration, she said, sucking up resources that would hamper a country's ability to grow and move forward, Yellen said.

"Unless it can get that burden at least partially off its back ... it's just hampered indefinitely in terms of what it's able to do and achieve for its citizens," she said. Partial debt reductions would allow a country to invest and grow and pay back some of the reduced debt, she said.

Lenders would get less if a country "falls into economic chaos" than if it can invest and grow, she said.

"I definitely think they get what the problem is, and that there needs to be a solution," she said of her discussions with officials from China, which is now the world's largest bilateral creditor. "Our counterparts are sophisticated economics officials who can listen to a reasoned argument and understand."

U.S. officials also discussed with their Chinese counterparts Washington does not agree that multilateral development banks should not have to take a haircut along with sovereign lenders - an argument Beijing often raises.

"That needs to be worked through, but we have counterparts who we are able to talk to in a reasonable way and work throughour differences. And I hope that out of that process that some progress will come, But I do I don't have a forecast for you."


1000 characters

Failure to cut debt burden of some countries could hamper growth, spark conflict: Yellen

As budget announcement nears, here are some proposals that could affect you

How experts view the upcoming budget announcement

Federal cabinet meeting approves Budget 2023-24

Cyclone Biparjoy: Climate minister says conditions supporting system may intensify

Migrants in UAE, including Pakistanis, turn to crypto to send remittances home

Kremlin says US can’t tell Saudi Arabia what to do on oil policy

Britain sets price floor on oil and gas windfall tax

Trump faces federal charges in classified documents case, adding to legal woes

Chinese investors flock to Riyadh conference seeking new markets, capital

Tax exemptions cost exchequer over Rs2.23trn