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Report: China has lent amounts exceeding one trillion dollars within the “Belt and Road” framework
November 7 14:43
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A report published this week estimated that China has lent amounts totaling more than $1 trillion under the Belt and Road Initiative and that about 80 percent of these loans are to countries experiencing financial difficulties.
Beijing says that more than 150 countries from Uruguay to Sri Lanka are participating in the Belt and Road Initiative, a huge project launched by China under the leadership of Xi Jinping ten years ago to develop international corridors and infrastructure.
Since then, China has granted huge loans to finance the construction of bridges, ports, railways and highways in low- and middle-income countries.
However, more than half of these loans have now entered the stage of repayment of the principal amount, according to a report published on Monday by the EdData Research Institute at the University of William End Mary in the US state of Virginia.
This report expected this percentage to rise to 75 percent by the end of the decade.
By analyzing data on Chinese financing for about 21,000 projects in 165 countries, the Aid Data Institute estimated that Beijing has granted aid and loans “close to $80 billion annually” to low- and middle-income countries.
By comparison, the United States gives $60 billion annually to these categories of countries. The report stated,
“Beijing is playing an unusual and uncomfortable role, which is that it has officially become the largest debt collector in the world.”
“The total debt owed — including principal but excluding interest — by borrowers from the developing world to China is at least $1.1 trillion,” the report noted.
The EdData Institute estimates that “80 percent of China’s loan portfolio abroad in developing countries currently supports countries in financial distress.”
Supporters of the Belt and Road Initiative say it brings resources and growth to the countries of the South.
His opponents denounce the ambiguity surrounding the costs of facilities built by Chinese companies.
Some countries, such as Malaysia and Burma, are currently trying to renegotiate their agreements with Beijing to ease their financial burdens.
The initiative also faces criticism due to its huge carbon footprint and environmental damage caused by large infrastructure projects. Ended / 25
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November 7 14:43
Information/follow up..
A report published this week estimated that China has lent amounts totaling more than $1 trillion under the Belt and Road Initiative and that about 80 percent of these loans are to countries experiencing financial difficulties.
Beijing says that more than 150 countries from Uruguay to Sri Lanka are participating in the Belt and Road Initiative, a huge project launched by China under the leadership of Xi Jinping ten years ago to develop international corridors and infrastructure.
Since then, China has granted huge loans to finance the construction of bridges, ports, railways and highways in low- and middle-income countries.
However, more than half of these loans have now entered the stage of repayment of the principal amount, according to a report published on Monday by the EdData Research Institute at the University of William End Mary in the US state of Virginia.
This report expected this percentage to rise to 75 percent by the end of the decade.
By analyzing data on Chinese financing for about 21,000 projects in 165 countries, the Aid Data Institute estimated that Beijing has granted aid and loans “close to $80 billion annually” to low- and middle-income countries.
By comparison, the United States gives $60 billion annually to these categories of countries. The report stated,
“Beijing is playing an unusual and uncomfortable role, which is that it has officially become the largest debt collector in the world.”
“The total debt owed — including principal but excluding interest — by borrowers from the developing world to China is at least $1.1 trillion,” the report noted.
The EdData Institute estimates that “80 percent of China’s loan portfolio abroad in developing countries currently supports countries in financial distress.”
Supporters of the Belt and Road Initiative say it brings resources and growth to the countries of the South.
His opponents denounce the ambiguity surrounding the costs of facilities built by Chinese companies.
Some countries, such as Malaysia and Burma, are currently trying to renegotiate their agreements with Beijing to ease their financial burdens.
The initiative also faces criticism due to its huge carbon footprint and environmental damage caused by large infrastructure projects. Ended / 25
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