US Senators seek blocking IMF bailout package to countries linked with China, like Pakistan and Sri Lanka
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WASHINGTON - US senators have sought to block any bailout package from the International Monetary Fund for countries who have taken sizeable loans from China. These include Pakistan, Sri Lanka and Djibouti.
Highlighting that China is using 'predatory financing' to dictate policies of these countries, many American senators have predicted that money from the IMF would be used to repay China. "We write to express our concern over bailout requests to the IMF by countries who have accepted predatory Chinese infrastructure financing,” a letter to Secretary of State Michael Pompeo and Treasury Secretary Steve Mnuchin reads. It has been signed by 16 senators.
These senators have said that while China maintains the loans given to countries like Pakistan are a part of Belt and Road Initiative, they are in fact tactics to control domestic and international policies of the same countries.
Pompeo himself had previously said that American dollars from IMF should not be given away so that countries can repay Chinese debts. The US is one of the biggest contributors to IMF.
