China is owed over $1tr in Belt and Road debt

[SoulSpokesman]

China is owed over $1tr in Belt and Road debt: report

First decade saw distribution of huge loans to fund construction of bridges, port, highways in low and middle-income countries.

www.dawn.com

BEIJING: China is owed more than a trillion dollars through its Belt and Road project, making it the biggest debt collector in the world, a report said this week, with an estimated 80 per cent of the loans supporting countries in financial distress.

Beijing says upwards of 150 countries stretching from Uruguay to Sri Lanka have signed up to the BRI, a vast global infrastructure push unveiled by President Xi Jinping a decade ago.

The first decade of the initiative saw China distribute huge loans to fund the construction of bridges, ports and highways in low and middle-income countries.

But much more than half of those loans have now entered their principal repayment period, said a report released on Monday by AidData, a research institute tracking development finance at Virginia’s College of William and Mary.

That figure is set to hit 75 per cent by the end of the decade, it added.

Crunching data compiled on Chinese financing of almost 21,000 projects across 165 countries, AidData said Beijing had now committed aid and credit “hovering around $80bn a year” to low and middle-income nations.

The United States, in contrast, has provided $60n to such countries a year.

“Beijing is navigating an unfamiliar and uncomfortable role — as the world’s largest official debt collector,” the report said.

“Total outstanding debt — including principal but excluding interest — from borrowers in the developing world to China is at least $1.1 trillion,” AidData said.

AidData, it added, “estimates that 80pc of China’s overseas lending portfolio in the developing world is currently supporting countries in financial distress”.

Proponents of the BRI praise it for bringing resources and economic growth to the Global South.

But critics have long pointed to opaque pricing for projects built by Chinese companies, with countries including Malaysia and Myanmar renegotiating deals to bring down costs.

And AidData said China has in recent years suffered reputational damage among developing countries, with its approval rating falling from 56pc in 2019 to 40pc in 2021.

But China is “learning from its mistakes and becoming an increasingly adept crisis manager”, the study said.

Beijing is seeking to de-risk the BRI by bringing its lending practices more in line with international standards, it stressed.

But also among those methods are “increasingly stringent safeguards to shield itself from the risk of not being repaid”, it said.

That includes allowing key BRI lenders to pay themselves principal and interest due by “unilaterally sweeping” borrowers’ foreign currency reserves held in escrow.

Regards

 

[khansaheeb]

China is owed over $1tr in Belt and Road debt: report

First decade saw distribution of huge loans to fund construction of bridges, port, highways in low and middle-income countries.

www.dawn.com

BEIJING: China is owed more than a trillion dollars through its Belt and Road project, making it the biggest debt collector in the world, a report said this week, with an estimated 80 per cent of the loans supporting countries in financial distress.

Beijing says upwards of 150 countries stretching from Uruguay to Sri Lanka have signed up to the BRI, a vast global infrastructure push unveiled by President Xi Jinping a decade ago.

The first decade of the initiative saw China distribute huge loans to fund the construction of bridges, ports and highways in low and middle-income countries.

But much more than half of those loans have now entered their principal repayment period, said a report released on Monday by AidData, a research institute tracking development finance at Virginia’s College of William and Mary.

That figure is set to hit 75 per cent by the end of the decade, it added.

Crunching data compiled on Chinese financing of almost 21,000 projects across 165 countries, AidData said Beijing had now committed aid and credit “hovering around $80bn a year” to low and middle-income nations.

The United States, in contrast, has provided $60n to such countries a year.

“Beijing is navigating an unfamiliar and uncomfortable role — as the world’s largest official debt collector,” the report said.

“Total outstanding debt — including principal but excluding interest — from borrowers in the developing world to China is at least $1.1 trillion,” AidData said.

AidData, it added, “estimates that 80pc of China’s overseas lending portfolio in the developing world is currently supporting countries in financial distress”.

Proponents of the BRI praise it for bringing resources and economic growth to the Global South.

But critics have long pointed to opaque pricing for projects built by Chinese companies, with countries including Malaysia and Myanmar renegotiating deals to bring down costs.

And AidData said China has in recent years suffered reputational damage among developing countries, with its approval rating falling from 56pc in 2019 to 40pc in 2021.

But China is “learning from its mistakes and becoming an increasingly adept crisis manager”, the study said.

Beijing is seeking to de-risk the BRI by bringing its lending practices more in line with international standards, it stressed.

But also among those methods are “increasingly stringent safeguards to shield itself from the risk of not being repaid”, it said.

That includes allowing key BRI lenders to pay themselves principal and interest due by “unilaterally sweeping” borrowers’ foreign currency reserves held in escrow.

Regards

Jealous Indians who can't even afford toilets always complaing and bitching about China things.

 

[SoulSpokesman]

@khansaheeb

Two things, saar

1. This farticle has been published in Dawn, a Pakistani newspaper as far as I know. You can ask them to stop publishing bad news about your tallel than mountain fliend.
2. Any loan rescheduling or write off will benefit you guys, not us Bharatis.

Regards

 

[etylo]

Jealousd Indians who can't even afford toilets always complaing and bitching about China things.

These fools all they do are always bitching that CPEC and BRI are nothing but debt traps and China can only produce cheap crap products for the world. These fools think the leaders of 150 countries in the world signed up BRI are too dumb to see the pitfalls and only Indians are smart ones, lol. Also, they can't even produce and build a shit for the world, but themselves buy Chinese products like crazy, lol, what are hypocritical losers.

 

[StraightEdge]

Well, it's $1.1 trillion.

https://edition.cnn.com/2023/11/07/business/china-bri-developing-countries-overdue-debt-intl-hnk/index.html

I can imagine how much leverage China has with the money it gets from trade surplus and send it back to BRI countries for infrastructure development. No wonder they win every decisive vote in UN general assembly.

 

[ProudThamizhan]

interesting timing of this article. Obviously Pakistan is testing the CCP waters for renegotiating terms.
Can't blame them

 

[SoulSpokesman]

@ProudThamizhan

PT Anna,

Obviously Pakistan is testing the CCP waters for renegotiating terms.

No need to renegotiate for GOP. They should just expropriate all assets and repudiate all debts and fixed charges and be done with it.

Regards

 

[Joe Shearer]

China is owed over $1tr in Belt and Road debt: report

First decade saw distribution of huge loans to fund construction of bridges, port, highways in low and middle-income countries.

www.dawn.com

BEIJING: China is owed more than a trillion dollars through its Belt and Road project, making it the biggest debt collector in the world, a report said this week, with an estimated 80 per cent of the loans supporting countries in financial distress.

Beijing says upwards of 150 countries stretching from Uruguay to Sri Lanka have signed up to the BRI, a vast global infrastructure push unveiled by President Xi Jinping a decade ago.

The first decade of the initiative saw China distribute huge loans to fund the construction of bridges, ports and highways in low and middle-income countries.

But much more than half of those loans have now entered their principal repayment period, said a report released on Monday by AidData, a research institute tracking development finance at Virginia’s College of William and Mary.

That figure is set to hit 75 per cent by the end of the decade, it added.

Crunching data compiled on Chinese financing of almost 21,000 projects across 165 countries, AidData said Beijing had now committed aid and credit “hovering around $80bn a year” to low and middle-income nations.

The United States, in contrast, has provided $60n to such countries a year.

“Beijing is navigating an unfamiliar and uncomfortable role — as the world’s largest official debt collector,” the report said.

“Total outstanding debt — including principal but excluding interest — from borrowers in the developing world to China is at least $1.1 trillion,” AidData said.

AidData, it added, “estimates that 80pc of China’s overseas lending portfolio in the developing world is currently supporting countries in financial distress”.

Proponents of the BRI praise it for bringing resources and economic growth to the Global South.

But critics have long pointed to opaque pricing for projects built by Chinese companies, with countries including Malaysia and Myanmar renegotiating deals to bring down costs.

And AidData said China has in recent years suffered reputational damage among developing countries, with its approval rating falling from 56pc in 2019 to 40pc in 2021.

But China is “learning from its mistakes and becoming an increasingly adept crisis manager”, the study said.

Beijing is seeking to de-risk the BRI by bringing its lending practices more in line with international standards, it stressed.

But also among those methods are “increasingly stringent safeguards to shield itself from the risk of not being repaid”, it said.

That includes allowing key BRI lenders to pay themselves principal and interest due by “unilaterally sweeping” borrowers’ foreign currency reserves held in escrow.

Regards

How dare you even come here any longer and post? The sorts of Indian members that are to be found here are extremely embarrassing pieces of shit. Every time I visit - perhaps once a quarter - the quality of those members has sunk yet some more notches. So, my question - what is it that you don't find in other places that drives you here and permits people to club you with the scum of the earth?

 

[SoulSpokesman]

@Joe Shearer

Dada,

This place reminds me of chowk. And to tell you the truth I have found many Indian, Pak and BD friends, all of whom kind of indulge me even knowing that I am a bit wierd.

Regards

 

[Haldorss]

And AidData said China has in recent years suffered reputational damage among developing countries, with its approval rating falling from 56pc in 2019 to 40pc in 2021.

So they agree to make China pay for development then want to steal it? There's no helping the developing world.

 

[Joe Shearer]

@Joe Shearer

Dada,

This place reminds me of chowk. And to tell you the truth I have found many Indian, Pak and BD friends, all of whom kind of indulge me even knowing that I am a bit wierd.

Regards

Hardly weird, knowing what we both know.

There are nice people here, especially among the older members, with a sprinkling of them among the younger members. It's just that the new ones, the new Indian ones, are really scummy.

 

[delta2]

These fools all they do are always bitching that CPEC and BRI are nothing but debt traps and China can only produce cheap crap products for the world. These fools think the leaders of 150 countries in the world signed up BRI are too dumb to see the pitfalls and only Indians are smart ones, lol. Also, they can't even produce and build a shit for the world, but themselves buy Chinese products like crazy, lol, what are hypocritical losers.

They are an extremely jealous people, and a lower IQ doesn't really help either.


The same Brahminist will jump with joy and classify themselves as a warp capable civilisation after importing everything and at the same time point fingers at China for not beating the Western companies fast enough.

They are an inherently hateful people. Nothing short of a major war will remind them again about who they really are and where they really belong.