China and other big creditors have a responsibility to prevent the debt problems facing emerging market and low-income countries from exploding, International Monetary Fund Managing Director Kristalina Georgieva said on Tuesday.
Read: Locked in a safe somewhere in London: over 30 sealed royal wills
Georgieva, speaking at an event hosted by the Center for Global Development, said 25% of emerging market and 60% of low-income countries were in or near debt distress.
“My message to the large creditors, to China, the private sectors … is that the larger your share is, the bigger your responsibility,” she said. “It is in your interest as creditors to prevent a problem from exploding.”
READ MORE: Scottish police charge man who heckled Prince Andrew during procession
Specifically, Georgieva said she hopes to see Sri Lanka’s public creditors quickly engaged and then bringing private creditors on board for debt negotiations.
Earlier on Tuesday the Sri Lankan government said financial advisory group Lazard started talks with India, China and Japan on restructuring Sri Lanka’s debt.
READ ALSO: