Yellen sees progress on Ukraine loan, G7 discusses China’s industrial overcapacity

U.S. Treasury Secretary Janet Yellen Optimistic About Larger Loan to Ukraine at G7 Summit

STRESA, Italy (Reuters) – U.S. Treasury Secretary Janet Yellen expressed optimism on Friday about the possibility of a larger loan to Ukraine backed by the income of frozen Russian sovereign assets during discussions with fellow G7 finance ministers.

Yellen, speaking to Reuters on the sidelines of a G7 finance leaders meeting in Stresa, Italy, stated that she does not see any major obstacles in the talks regarding the proposed loan. While not all technical details have been finalized, Yellen believes that progress is being made towards reaching a consensus.

“I think things look pretty good,” Yellen said after engaging in several bilateral meetings on the first day of the summit. “I’ve not seen anything I regard as a show stopper, but there are some issues that we need to be sorted out and people will have to be flexible to reach common ground.”

The loan proposal involves pulling forward the earnings on approximately $300 billion in Russian sovereign assets to support a larger loan for Ukraine. While specific details of the loan have yet to be determined, Yellen is hopeful that a framework can be established in the coming weeks for presentation to G7 leaders in June.

G7 leaders, including the U.S., Japan, Germany, France, Britain, and Italy, are scheduled to convene next month in Puglia, southern Italy.

In addition to discussions on the Ukraine loan, Yellen also addressed concerns about China’s industrial overcapacity among G7 finance ministers. While there are varying opinions on the matter, Yellen emphasized the need for a unified approach in addressing China’s economic strategies.

Overall, the G7 meeting has highlighted the importance of cooperation and coordination among member countries in addressing global economic challenges.

(Reporting by David Lawder; Editing by Chizu Nomiyama and Diane Craft)

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