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"The IMF team has just returned from Pakistan.One of the goals we insist on is full transparency of debt," said Undersecretary Secretary David Malpbad, when of a hearing before the US Congress.
Malpbad Responded to a Question from Senator Jeff Merkley on Pakistan's Specific Pakistan Debt at a Senate Subcommittee Hearing on Foreign Relations in Charge of Multilateral and International Development, Multilateral Institutions and Politics international economic, environmental and energy economy.
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Senator Merkley, a prominent member of the subcommittee, asked if IMF funds are used primarily to repay Chinese debt.
"Pakistan is a good example of a country that has a lot of Chinese investments, I think I have a figure of 62 billion USD.They owe a lot to China, to Chinese banks, and they are looking for a bailout from the IMF.I think it's a $ 12 billion bailout.They asked the United States to make sure we do not block this, "said the senator. Oregon
"Is this IMF money essentially going to help Pakistan repay Chinese banks, why a good strategy for economic development?" Merkley asked.
"One of the problems is that they (China) have not disclosed the terms of – in many cases, they have not disclosed the terms of this debt. the interest rate, the maturity and "We think the maturity of the Chinese debt comes after the IMF would have been repaid," said Malpbad, who answered the question about Pakistan. (19659004), from the the challenge of using IMF funds to pay Chinese money, the challenge is to find a program that will lead to substantial economic reform in Pakistan and allow it to be financed, which will allow Pakistan to finance itself and financially, said Malpbad.
According to the highest official of the Treasury, this problem is not peculiar to Pakistan. "China grants loans in many countries where loan conditions are not simply not defined, which gives it a lot of weight as part of its program. We repress him very hard at the Paris Club, the OECD, the IMF, the World Bank, the G20 and the G7, "he said.
Answering a question, Malpbad said that, in some cases, the conditions of the Chinese debt were not given to the borrower nor to the international.
"They are not made public, they are not available for international committee, but sometimes they are not even available to certain parties within the government itself. It's a problem because China can make a loan, but I do not really want the terms of the loan to be disclosed even within the government to which it lends, "he said while legislators had expressed their concerns about the Chinese debt trap model.
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