18.9 C
Athens
Σάββατο, 23 Νοεμβρίου, 2024

China goes easy on foreign lending as BRI loans mounts

Περισσότερα Νέα

- Advertisement -

China’s flagship Belt and Road Initiative (BRI) has hit a snag, with many loans to emerging economies falling into repayment troubles, forcing Beijing to scale back on lending.

The COVID-19 pandemic, followed by the Russia-Ukraine conflict, has adversely affected emerging economies. As countries struggle to meet debt obligations, China is likely to face more problem loans, Nikkei Asia reported.


China reported 19 cases of interest payment waivers and other loan conditions in 2021, a significant jump from previous years, according to the US think tank Rhodium Group estimate.
These renegotiations covered a total of USD 52 billion for 2020 and 2021 as emerging economies were hit hard by the COVID-19 pandemic, the report said. The latest figure on renegotiations is more than triple the USD 16 billion for the preceding two-year period.


Nearly 60 per cent of China’s foreign loans are now to countries in debt crises, compared to just 5 per cent in 2010, according to a report released by a group of researchers in April. This report included estimates from World Bank economist Sebastian Horn.
Chinese Foreign Minister Wang Yi told African countries in August that said Beijing will forgive the principal repayment on 23 interest-free loans that had been due by the end of 2021.
According to the Japanese daily, Beijing is treading lightly on its massive lending program.


China’s new loans to lower-middle income nations came to just USD 13.9 billion in 2020, tumbling 58 per cent from the record high in 2018, the Nikkei report said citing data from the World Bank.

- Advertisement -


“With a slowing economy, China has shifted its economic focus to domestic demand,” said Yusuke Suzuki at Mitsui & Co. Global Strategic Studies Institute. According to Yusuke, it is unlikely that loans will increase significantly going forward.


In their June statement, even the Group of Seven (G7) leaders called out China on the issue of mounting loans to a number of countries. They urged Beijing to provide debt relief to low-income countries.


Kai Kajitani, a professor at Kobe University, noted that there is a risk that Chinese loans to Russia could go bad, due to Western sanctions.


“China could make up for this by suspending new loans to low-income economies or collecting debts,” he was quoted as saying by Nikkei.

- Advertisement -

ΑΠΑΝΤΗΣΤΕ

εισάγετε το σχόλιό σας!
παρακαλώ εισάγετε το όνομά σας εδώ

The reCAPTCHA verification period has expired. Please reload the page.

Ροή ειδήσεων

ΣΧΕΤΙΚΑ ΑΡΘΡΑ

Fatwa against VPNs: A threat to digital freedom in Pakistan

In a rapidly evolving digital world, where technology is increasingly integrated into every aspect of our lives, the internet is often viewed as a...

Strikes and protests increase in China due to unpaid wages and factory closures

Strikes and protests by labourers and industry workers have seen arise in China where such incidences are strictly forbidden. The majority of the protests...

Pakistan: HRCP demands reversal of Anti-Terrorism Act amendment proposal, warns of threats to democracy

The Human Rights Commission of Pakistan (HRCP) concluded its 38th Annual General Meeting with a stern call for urgent action to address Pakistan’s worsening...

China’s space ambitions face ‘huge test’ from Musk presence in Trump White House

Tech mogul Elon Musk's potential weight in the second Donald Trump administration is likely to accelerate the US space programme and pose a "huge test" to China's extraterrestrial...

ΔΗΜΟΦΙΛΗ ΑΡΘΡΑ

Φέτβα κατά των VPN: Μια απειλή για την ψηφιακή ελευθερία στο Πακιστάν

Σε έναν ταχέως εξελισσόμενο ψηφιακό κόσμο, όπου η τεχνολογία ενσωματώνεται ολοένα και περισσότερο σε κάθε πτυχή της ζωής μας, το Διαδίκτυο θεωρείται συχνά ως...

Fatwa against VPNs: A threat to digital freedom in Pakistan

In a rapidly evolving digital world, where technology is increasingly integrated into every aspect of our lives, the internet is often viewed as a...

Σε κίνδυνο τα ανθρώπινα δικαιώματα στο Πακιστάν

Η Επιτροπή Ανθρωπίνων Δικαιωμάτων του Πακιστάν (HRCP) ολοκλήρωσε την 38η Ετήσια Γενική Συνέλευση με μια αυστηρή έκκληση για επείγουσα δράση για την αντιμετώπιση της...

Οι απεργίες και οι διαδηλώσεις αυξάνονται στην Κίνα λόγω των απλήρωτων μισθών και του κλεισίματος των εργοστασίων

Απεργίες και διαμαρτυρίες από εργάτες και εργάτες της βιομηχανίας έχουν εμφανιστεί στην Κίνα όπου τέτοια περιστατικά απαγορεύονται αυστηρά. Η πλειονότητα των διαμαρτυριών διεξήχθη πριν...