PBOC Deputy Governor Xuan Changneng Urges Private Creditor Role in Sovereign Debt Relief

People's Bank of China Deputy Governor Xuan Changneng called for greater private-sector participation in sovereign debt restructuring as higher borrowing costs add to debt-servicing burdens in developing nations. In a Sunday statement, the central bank said Xuan urged the creation of an effective mechanism to ensure private creditors participate comparably in debt restructurings, alongside improvements to the International Monetary Fund and World Bank debt-sustainability framework for low-income countries. Xuan made the remarks last week while attending the Global Sovereign Debt Roundtable during the IMF and World Bank annual meetings in Bangkok. Separately, Xuan stated that China will expand domestic demand, promote efficient services sector growth, and advance infrastructure investment across power grids, computing, communications, water, urban pipelines, and logistics.