China and private sector could free ride on SDR issuance – El-Erian

Economist calls for development of a new common sovereign debt restructuring framework; Vera Songwe says many countries need more debt relief


Creditor countries that are not members of the Paris Club, such as China, as well as the private sector, could free ride on a new issuance of Special Drawing Rights (SDR).

Mohamed El-Erian, president of Queens’ College, Cambridge, warned about this risk on April 6 as he called for the development of a new global sovereign debt restructuring framework.

“I can tell you that private creditors are very excited about the SDR allocation, because the inclination right now in the private sector is to

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