A lot of times, the IMF will lead all creditors of a country to restructure, reduce, or reschedule existing debt. What is happening is that Chinese institutions appears to be less willing to write down bad debt, holding up a lot of negotiations between debt holders. So, the debt doesn’t get reduced.
A lot of times, the IMF will lead all creditors of a country to restructure, reduce, or reschedule existing debt. What is happening is that Chinese institutions appears to be less willing to write down bad debt, holding up a lot of negotiations between debt holders. So, the debt doesn’t get reduced.
Is this a bad thing somehow? I would think reducing debts is generally beneficial, especially in times of economic crisis.