China’s Belt And Road Rescue Lending Soars [Infographic]
The post China’s Belt And Road Rescue Lending Soars [Infographic] appeared on BitcoinEthereumNews.com. As China’s Belt and Road Initiative enters its second decade, the country has been celebrating with much pomp and many global leaders in attendance. But China’s high-level infrastructure and international development program has not been free of controversy. The Kiel Institute for the World Economy has identified a major rise in emergency loans to countries having difficulty repaying debt taken on as part of Belt and Road projects. Additionally, China’s loan conditions and transparency practices are being criticized by the researchers. Between 2015 and 2021, China extended substantial emergency lines of liquidity swaps to Belt and Road countries like Mongolia, Egypt, Pakistan, Sri Lanka and Turkey, many of them being rolled over and often increased for several years in a row. Oman, Angola and Venezuela as well as some of the countries mentioned above also received medium-term loans of at least $1 billion each as balance-of-payment support in that time frame. This chart shows yearly amounts of cross-border rescue lending by China (in billion U.S. dollars). Statista Mongolia’s high debt to China became a problem when the mineral-rich country fell on hard times after the 2000s commodities boom fizzled out. In 2021, its external debt to China still stood at 24% of gross national income, one of the highest ratios in the world. Both big Belt and Road borrowers, Pakistan and Egypt had to accept large-scale bailouts from China while their economies have been flailing. The share of China’s borrowers in distress has increased so steeply in recent years that 60% of the country’s overseas lending portfolio supported these countries in 2022, up from just 5% in 2010. In 2015, bailouts from China shot up to almost $30 billion, from just around $11 billion the year before, as China upped its emergency loans to distressed Argentina by more than $8…
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The post China’s Belt And Road Rescue Lending Soars [Infographic] appeared on BitcoinEthereumNews.com.
As China’s Belt and Road Initiative enters its second decade, the country has been celebrating with much pomp and many global leaders in attendance. But China’s high-level infrastructure and international development program has not been free of controversy. The Kiel Institute for the World Economy has identified a major rise in emergency loans to countries having difficulty repaying debt taken on as part of Belt and Road projects. Additionally, China’s loan conditions and transparency practices are being criticized by the researchers. Between 2015 and 2021, China extended substantial emergency lines of liquidity swaps to Belt and Road countries like Mongolia, Egypt, Pakistan, Sri Lanka and Turkey, many of them being rolled over and often increased for several years in a row. Oman, Angola and Venezuela as well as some of the countries mentioned above also received medium-term loans of at least $1 billion each as balance-of-payment support in that time frame. This chart shows yearly amounts of cross-border rescue lending by China (in billion U.S. dollars). Statista Mongolia’s high debt to China became a problem when the mineral-rich country fell on hard times after the 2000s commodities boom fizzled out. In 2021, its external debt to China still stood at 24% of gross national income, one of the highest ratios in the world. Both big Belt and Road borrowers, Pakistan and Egypt had to accept large-scale bailouts from China while their economies have been flailing. The share of China’s borrowers in distress has increased so steeply in recent years that 60% of the country’s overseas lending portfolio supported these countries in 2022, up from just 5% in 2010. In 2015, bailouts from China shot up to almost $30 billion, from just around $11 billion the year before, as China upped its emergency loans to distressed Argentina by more than $8…
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