Germany welcomes China's backing for G20 debt plan to help poorer countries

FRANKFURT, Germany

Germany has welcomed a show of support from China for the G20 debt restructuring framework for poorer countries in a joint statement after their financial talks in Frankfurt over the weekend.

"We welcome the fact that the Chinese side is also committed to this in our Joint Statement, because solutions are inconceivable without China as such an important player in world politics," German Finance Minister Christian Lindner said on Sunday, after his meeting with Chinese Vice Premier He Lifeng.

Neither provided further details on the rules for the restructuring plans and the joint statement did not give specifics.  

During Sunday's talks, Germany and China showed their determination to expand market access opportunities between both countries.

"This creates opportunities on both sides for more responsible trade and investment," German Finance Minister Christian Lindner said. China is willing to work with Germany to further "mutually beneficial" cooperation, and inject more "positive energy" into their partnership, the official Xinhua news agency reported on Sunday, citing He.

Both sides will support German financial institutions' conducting renminbi (RMB) business, and the lifting of bilateral restrictions and possible obstacles for cross-border transaction. High-ranking representatives of the countries' central banks and supervisory authorities attended the third financial dialogue between Berlin and Beijing, as well as companies' representatives.

"It is important for me to emphasize that for the first time in the history of the Financial Dialogue we have established a Financial Roundtable with representatives of important financial institutions and private companies," Lindner said.

Lindner proposed to increase the frequency of financial dialogues between China and Germany, to have these meetings annually instead of every two years, as both countries want faster progress. "In politics, two years is a long time, but in financial matters, two years is an eternity," he said.

The meeting took place in Frankfurt, as Germany want to further strengthen this city as an European hub for financial services, the finance minister added.

Deutsche Borse Group expressed its support for the meeting's outcomes, saying the bank welcomes German business entities to actively participate in the Chinese interbank market, including investing in RMB bonds, using RMB bonds as collateral, and participating in the Chinese interbank foreign exchange market.