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

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 could lead 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 the imperative 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 countries regain 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.