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US Treasury Secretary Warns Against Irresponsible Lending, Borrowing


U.S. Treasury Secretary Henry Paulson is warning against irresponsible borrowing or lending to countries that have recently received debt relief.

Speaking in Singapore Monday to the World Bank's policy-setting committee, Paulson said the organization should develop an approach that prevents a reemergence of debt distress.

He did not single out any country, but stressed that creditors are still providing large loans to countries that have recently received debt relief.

China, in particular, has come under fire for providing loans to many countries in Africa that have only recently had large debts forgiven.

Annual meetings of the World Bank and International Monetary Fund take place in Singapore Tuesday and Wednesday.

Some information for this report provided by Reuters and AP.