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- There is too much debt in the world - World Bank President
There is too much debt in the world - World Bank President
There is too much debt floating around the world and China is a big reason why, World Bank President David Malpass said.
“There are challenges facing the world in terms of how do you have transparent projects that are high quality, where the debt is transparent. China moved so fast that in some part of the world there is just too much debt. That’s something that we can work on with China.” Malpass told.
China has lent trillions of dollars to other countries, including the U.S. As of January, China owns $1.12 trillion in U.S. Treasurys, according to data from the Treasury Department.
Malpass has been a critic of China’s lending efforts to fund its “One Belt, One Road” infrastructure initiative. Last year, he said these loans leave weaker countries with “excessive debt and low-quality projects.
Malpass indicated China is willing to scale back on these efforts, noting: “They want to see a better relationship with other countries and be part of the world system. I expect to be successful in that and have a good relationship with China.”
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