THIRD world countries are due to make record debt repayments to China in 2025 on loans extended a decade earlier at the peak of Beijing's Belt and Road Initiative, Reuters reports.
A report by the Sydney-based Lowy Institute said US$35 billion in debt repayments are due to be made to China by developing countries in this year with $22 billion is set to be paid by 75 of the world's poorest nations, the report said.
Under the initiative launched by Chinese leader Xi Jinping in 2013, Beijing lent billions of dollars to build infrastructure to connect Asia, Europe and Africa, as it also sought to build trade and influence.
'For the rest of this decade, China will be more debt collector than banker to the developing world,' said Riley Duke, the report's author. In 54 developing countries, debt payments to China will exceed the combined payments owed to the Paris Club of Western bilateral lenders, the report said.
Principal debtors are Pakistan, Kazakhstan, Mongolia, Argentina, Brazil, Congo DR, and Indonesia. Additionally, countries that recently switched diplomatic recognition from Taiwan to China, such as Honduras and the Solomon Islands, have received new loans.
SeaNews Turkey
A report by the Sydney-based Lowy Institute said US$35 billion in debt repayments are due to be made to China by developing countries in this year with $22 billion is set to be paid by 75 of the world's poorest nations, the report said.
Under the initiative launched by Chinese leader Xi Jinping in 2013, Beijing lent billions of dollars to build infrastructure to connect Asia, Europe and Africa, as it also sought to build trade and influence.
'For the rest of this decade, China will be more debt collector than banker to the developing world,' said Riley Duke, the report's author. In 54 developing countries, debt payments to China will exceed the combined payments owed to the Paris Club of Western bilateral lenders, the report said.
Principal debtors are Pakistan, Kazakhstan, Mongolia, Argentina, Brazil, Congo DR, and Indonesia. Additionally, countries that recently switched diplomatic recognition from Taiwan to China, such as Honduras and the Solomon Islands, have received new loans.
SeaNews Turkey
