SYDNEY (Reuters) -The world’s poorest 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, a report by the Sydney-based Lowy Institute think tank said on Monday.
Under the initiative launched by Chinese President 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.
Of $35 billion in debt repayments due to be made to China by developing countries in 2025, $22 billion is set to be paid by 75 of the world’s poorest and most vulnerable countries, putting at risk health and education spending, the report said.
“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.
“As Beijing shifts into the role of debt collector, Western governments remain internally focused, with aid declining and multilateral support waning,” the report said, warning of the risk of development setbacks and instability.
(Reporting by Kirsty Needham in Sydney; Editing by Joe Bavier)
Comments