West's debt trap allegations don't stand up to scrutiny
1 year, 10 months ago

West's debt trap allegations don't stand up to scrutiny

China Daily  

Earlier this month, during his first official visit abroad since his appointment as China's foreign minister, Qin Gang vehemently denied allegations that his country's aid to African nations is a "debt trap". According to the World Bank's international debt statistics, by the end of 2020, the sovereign debt of 82 low- and middle-income countries held by commercial and multilateral lenders accounted for 40 and 34 percent, respectively, of the total loan book. According to a study published by Debt Justice based on data from the World Bank, African governments owe 35 percent of their total sovereign debt to Western banks and just 12 percent to China. Deborah Brautigam, the director of the China-Africa Research Initiative at Johns Hopkins University's School of Advanced International Studies, said that between 2000 and 2019, China canceled at least $3.4 billion of such debt in Africa.

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History of this topic

China is the world’s largest debt collector
3 days, 19 hours ago

China is the world’s largest debt collector

The Hindu  

Over 25% of the world’s bilateral external debt was owed to China by the end of 2023, making the country the leading debt collector. Further, over the last two decades, when China’s external lending increased massively, the amount of bilateral external debt owed by countries surged exponentially too. Chart 1 shows the bilateral external debt stocks owed to all countries …

African development gets Chinese push
3 months, 3 weeks ago

African development gets Chinese push

China Daily  

Exhibitors exchange at an expo in Nairobi, Kenya. LI YAHUI/XINHUA Trade between China and Africa rose 5.5 percent year-on-year to 1.19 trillion yuan in the first seven months of this year, while China's trade with Africa in intermediate goods posted 6.4 percent year-on-year growth, official data showed. Echoing that sentiment, Zhang Chun, a researcher at the Center for African Studies, …

African development gets Chinese push
3 months, 3 weeks ago

African development gets Chinese push

China Daily  

Exhibitors exchange at an expo in Nairobi, Kenya. LI YAHUI/XINHUA Trade between China and Africa rose 5.5 percent year-on-year to 1.19 trillion yuan in the first seven months of this year, while China's trade with Africa in intermediate goods posted 6.4 percent year-on-year growth, official data showed. Echoing that sentiment, Zhang Chun, a researcher at the Center for African Studies, …

Pacific Island nations owe 'astronomical' debts to China. Can they repay?
4 months, 3 weeks ago

Pacific Island nations owe 'astronomical' debts to China. Can they repay?

ABC  

It wasn't long ago that rain would stop Martha Kapalu from travelling to the southern reaches of her island in Vanuatu. A $30 million budget lifeline from Australia has also helped by funding public services, giving Tonga's government financial breathing space to make debt repayments to China, Mr Duke says. Mr Duke said the money Pacific Island nations owed to …

'Debt-trap diplomacy' a fabricated myth
6 months, 1 week ago

'Debt-trap diplomacy' a fabricated myth

China Daily  

Chinese 100 yuan banknotes are seen in a counting machine at a bank in Beijing. Editor's note: A recent editorial article on Guyana Times analyzed how the "Chinese debt-trap diplomacy" myth was created and twisted as the United States targeting at China. This is a term to describe an international financial relationship where a creditor country or institution extends debt …

'Debt-trap diplomacy' a fabricated myth
6 months, 1 week ago

'Debt-trap diplomacy' a fabricated myth

China Daily  

Chinese 100 yuan banknotes are seen in a counting machine at a bank in Beijing. Editor's note: A recent editorial article on Guyana Times analyzed how the "Chinese debt-trap diplomacy" myth was created and twisted as the United States targeting at China. This is a term to describe an international financial relationship where a creditor country or institution extends debt …

The UN says global public debt hit a record $97 trillion in 2023. Developing countries are hard hit
6 months, 2 weeks ago

The UN says global public debt hit a record $97 trillion in 2023. Developing countries are hard hit

Associated Press  

GENEVA — Global public debt rose to a record $97 trillion last year, the United Nations reported Tuesday, with developing countries owing roughly one-third of that — crimping their ability to pay for basic government services like health care, education and climate action. In 2023, public debt in developing countries hit $29 trillion, or about 30% of the total worldwide …

Debt owed by Pakistan, Sri Lanka and Bangladesh to China rise to record levels: Data
7 months, 1 week ago

Debt owed by Pakistan, Sri Lanka and Bangladesh to China rise to record levels: Data

The Hindu  

Debt owed by various countries, especially in South Asia and Africa, to China has multiplied in recent years. In comparison, the low-and-middle-income countries’ total debt owed to the International Bank for Reconstruction and Development, a global development cooperative owned by 189 nations, was just a little higher at $223 billion. As seen in Chart 1, Pakistan’s total external debt stocks …

Why the G-20 ‘Common Framework’ for Debt Relief Isn’t Helping Poor Nations
8 months, 2 weeks ago

Why the G-20 ‘Common Framework’ for Debt Relief Isn’t Helping Poor Nations

Bloomberg  

More than half of the world’s low-income countries are at high risk of debt distress or are already in it, and several have defaulted. But despite the world’s 20 largest economies having agreed in 2020 to a plan called the Common Framework to smooth the process of restructuring loans that governments could no longer afford to service or repay, progress …

Money Morass: Desperate China to refocus on stressed BRI borrowers, hanging projects
1 year, 1 month ago

Money Morass: Desperate China to refocus on stressed BRI borrowers, hanging projects

Firstpost  

China has pumped billions of dollars in grants and loans into developing countries over the last ten years. Called “One Belt, One Road” in Chinese, the Belt and Road Initiative started as a program for Chinese companies to build transportation, energy and other infrastructure overseas funded by Chinese development bank loans. China has granted about $1 trillion in loans to …

China's great wall of debt driving ‘unsustainable’ increase in borrowing, IMF warns
1 year, 3 months ago

China's great wall of debt driving ‘unsustainable’ increase in borrowing, IMF warns

The Telegraph  

China is driving global debt back towards unsustainable levels amid an “unparalleled” borrowing binge by property developers and local governments, according to the International Monetary Fund. The IMF warned that a declining global debt share in 2022 risked being just a “pandemic blip” and said there was an urgent need to “restore fiscal sustainability”. “Global debt, which remained significantly higher …

Increasing G20 cooperation on debt and investment in Africa
1 year, 4 months ago

Increasing G20 cooperation on debt and investment in Africa

Hindustan Times  

Africa’s long-standing and difficult history with international capital can be attributed to a complex set of factors, including historical legacies, structural adjustment programmes and, most recently, Chinese investment. While Africa’s hard-won credit market access had been hailed as the key to boosting the region’s growth and development, countries now face significant challenges in their relationship with international capital, with profound …

India’s ’economic diplomacy’ bolsters lending in Africa, countering China
1 year, 5 months ago

India’s ’economic diplomacy’ bolsters lending in Africa, countering China

Live Mint  

India has increased its credit flow to Africa, making it the second-largest beneficiary of Indian credit. As per a report by Bloomberg, Forty-two African nations received about $12 billion or 38% of all credit extended by India in the last decade — just a few percentage points below its neighbours, Harsha Bangari, the managing director of India’s Export-Import Bank said …

BRI a tool for development, not debt traps
1 year, 5 months ago

BRI a tool for development, not debt traps

China Daily  

The claims that the Belt and Road Initiative has been used as a tool to create debt traps for receptive countries are completely wrong, said Jin Keyu, associate professor of economics at the London School of Economics and Political Science. "The majority of debt in emerging markets is owed to Western institutions, multilateral institutions and financial institutions, including private creditors …

China is pushing poor nations like Pakistan into its debt trap, one at a time
1 year, 7 months ago

China is pushing poor nations like Pakistan into its debt trap, one at a time

Op India  

The People’s Republic of China has been pushing poor countries to the brink of economic ruin through its well-thought-out ‘debt trap’ and its unforgiving nature when it comes to the recovery of loans. An AP analysis found that countries heavily indebted to China are draining foreign currency reserves used to pay interest on loans, leaving some with just months before …

China's hidden debt pushes world's poorest countries to brink of collapse
1 year, 7 months ago

China's hidden debt pushes world's poorest countries to brink of collapse

Firstpost  

A dozen poor nations are facing economic instability and possibly collapse as a result of hundreds of billions of dollars in foreign loans, most of which are from China, the world’s largest and most unforgiving government lender. Countries in the AP’s research received up to 50 per cent of their foreign loans from China, and most spent more than a …

China's 'mysterious' debt rules pushing world's poorest countries including Pakistan to brink of collapse
1 year, 7 months ago

China's 'mysterious' debt rules pushing world's poorest countries including Pakistan to brink of collapse

India TV News  

Chinese debt trap: Sri Lanka, Pakistan, Kenya, Zambia and a dozen poor countries are facing economic instability and even collapse as they had once taken loans from China. Pakistan is on the verge of becoming Sri Lanka Countries in AP’s analysis had as much as 50% of their foreign loans from China and most were devoting more than a third …

China denies ’debt trap diplomacy’ amid $59.87 loan to African nations
1 year, 8 months ago

China denies ’debt trap diplomacy’ amid $59.87 loan to African nations

Live Mint  

Chinese foreign ministry spokesperson Wang Wenbin clarified that China is not responsible for African countries' "debt trap," but rather a supportive partner in helping them and other developing nations break free from the "poverty trap," as reported by CCTV. As per the report, Wenbin stressed that those accusations have no factual basis and, "China attaches great importance to Africa's debt …

China must show it can play by world debt-revamp rules: IMF
1 year, 8 months ago

China must show it can play by world debt-revamp rules: IMF

Hindustan Times  

China, the biggest bilateral creditor to developing countries, needs to show it can operate within established international debt-relief processes for poor nations struggling to pay, the chief of the International Monetary Fund said. “China has been very slow to recognize that multilateral debt restructuring requires China to play by the rules that are already established,” Managing Director Kristalina Georgieva said …

World Bank president David Malpass raises concerns over China's loans to developing nations
1 year, 8 months ago

World Bank president David Malpass raises concerns over China's loans to developing nations

Op India  

In a recent development, the President of the World Bank, David Malpass, has expressed concerns over China’s loans to developing countries and the possibility of a “Chinese debt trap” that Beijing is notorious for in asserting its dominance over countries seeking funds to shore up their respective economies. This phenomenon refers to China’s practice of offering large loans to developing …

Irresponsible & unreasonable: China slams US over its debt trap accusation
1 year, 8 months ago

Irresponsible & unreasonable: China slams US over its debt trap accusation

India Today  

China on Thursday called remarks by US Treasury Secretary Janet Yellen "irresponsible" and "unreasonable" after the former said Beijing's lending activities leave developing countries "trapped in debt." "I am very, very concerned about some of the activities that China engages in globally, engaging in countries in ways that leave them trapped in debt and don't promote economic development," Yellen said …

Debt load may pose threat to nations: PM
1 year, 9 months ago

Debt load may pose threat to nations: PM

Live Mint  

Prime Minister Narendra Modi cautioned on Friday that unsustainable debt levels posed a threat to the financial stability of nations and called upon G20 finance ministers and central bank governors to work towards restoring stability, confidence, and growth to the global economy. International Monetary Fund managing director Kristalina Georgieva said on Thursday that the IMF, World Bank and India’s G20 …

‘Cope with your own debt’, China tells US over Zambia debt relief
1 year, 10 months ago

‘Cope with your own debt’, China tells US over Zambia debt relief

Al Jazeera  

Washington and Beijing are vying for influence in Africa, where Chinese banks are major lenders. “The biggest contribution that the US can make to the debt issues outside the country is to cope with its own debt problem and stop sabotaging other sovereign countries’ active efforts to solve their debt issues,” the Chinese embassy in Zambia said in a statement …

Unmasked: The face of the real debt trap maker
2 years, 3 months ago

Unmasked: The face of the real debt trap maker

China Daily  

An aerial view of the Padma Multipurpose Bridge and railway project in Louhajang, about 40 kilometers from Dhaka, capital of Bangladesh, in June. China is often accused by the US and others of exploitative behavior in developing countries but the facts point to the true source of the problem: the West The United States and other Western countries often accuse …

Unmasked: The face of the real debt trap maker
2 years, 3 months ago

Unmasked: The face of the real debt trap maker

China Daily  

An aerial view of the Padma Multipurpose Bridge and railway project in Louhajang, about 40 kilometers from Dhaka, capital of Bangladesh, in June. China is often accused by the US and others of exploitative behavior in developing countries but the facts point to the true source of the problem: the West The United States and other Western countries often accuse …

Debt trap smears smack of imperialist intent to keep poorer countries poor: China Daily editorial
2 years, 4 months ago

Debt trap smears smack of imperialist intent to keep poorer countries poor: China Daily editorial

China Daily  

An American flag flies outside of the US Capitol dome in Washington, US, Jan 15, 2020. They claim that China is forcing poorer countries into debt traps, by convincing them into taking on loans for infrastructure projects that they can't afford and that offer few benefits, so that Beijing eventually takes control of these assets when the countries can't repay …

英国机构：将非洲债务危机归咎于中国是转移目标
2 years, 4 months ago

英国机构：将非洲债务危机归咎于中国是转移目标

China Daily  

西方国家频频抹黑中国给非洲带来“债务危机”，但英国活动团体“债务正义”7月11日发布的最新调查显示，非洲国家欠西方银行、资产管理公司和石油交易商的债务，是其欠中国债务的3倍；前者收取的利率也是中国的两倍。“债务正义”政策负责人蒂姆·琼斯指出：“西方领导人将非洲的债务危机归咎于中国，但这是在转移注意力。事实上，他们自己的银行、资产管理公司和石油交易商的责任更大，但七国集团却让他们置身事外。” African countries owe three times more debt to Western banks, asset managers and oil traders than to China, and are charged double the interest, according to a study released on July 11th by British campaign charity Debt Justice. The study said just 12 percent of the continent’s external debt was owed to Chinese lenders, compared to 35 percent owed …

英国机构：将非洲债务危机归咎于中国是转移目标
2 years, 4 months ago

英国机构：将非洲债务危机归咎于中国是转移目标

China Daily  

西方国家频频抹黑中国给非洲带来“债务危机”，但英国活动团体“债务正义”7月11日发布的最新调查显示，非洲国家欠西方银行、资产管理公司和石油交易商的债务，是其欠中国债务的3倍；前者收取的利率也是中国的两倍。“债务正义”政策负责人蒂姆·琼斯指出：“西方领导人将非洲的债务危机归咎于中国，但这是在转移注意力。事实上，他们自己的银行、资产管理公司和石油交易商的责任更大，但七国集团却让他们置身事外。” African countries owe three times more debt to Western banks, asset managers and oil traders than to China, and are charged double the interest, according to a study released on July 11th by British campaign charity Debt Justice. The study said just 12 percent of the continent’s external debt was owed to Chinese lenders, compared to 35 percent owed …

Facts derail Africa 'debt trap' smears
2 years, 5 months ago

Facts derail Africa 'debt trap' smears

China Daily  

Photo taken on Dec 7, 2021, shows a section of the 27.1-km Nairobi Expressway which is being constructed by the China Road and Bridge Corporation in Nairobi, Kenya. Talk of a so-called Chinese "debt trap" burdening African countries is pure disinformation and, contrary to what those behind the smears say, China has always been dedicated to easing Africa's debt pressures, …

‘Entrapment’ or ‘ineptitude’? Sri Lanka debt crisis reignites debate on Chinese lending
2 years, 7 months ago

‘Entrapment’ or ‘ineptitude’? Sri Lanka debt crisis reignites debate on Chinese lending

The Hindu  

With the on-going debt crisis in Sri Lanka turning the spotlight on China’s lending practices, Beijing has been pushing back against allegations of what has been called “debt trap diplomacy”. Research by China scholars Deborah Brautigam and Meg Rithmire showed “Chinese banks are willing to restructure the terms of existing loans and have never actually seized an asset from any …

China's debt trap: BRI countries owe China close to 385 billion USD in hidden debt, reveals report
3 years, 2 months ago

China's debt trap: BRI countries owe China close to 385 billion USD in hidden debt, reveals report

Op India  

China has long been known for using its financial clout to further “debt-trap diplomacy”, a policy that encompasses saddling borrowing nations with excessive credit with the intention of extracting economic or political concessions from the debtor country when it finds it increasingly difficult to meet its debt repayment obligations. Now, a report published by AidData says China’s Belt and Road …

China demands secrecy in its loans to developing countries: Study
3 years, 8 months ago

China demands secrecy in its loans to developing countries: Study

Al Jazeera  

US researchers say Chinese lenders require borrowers to prioritise repayments to Chinese banks ahead of others. The terms of China’s loan deals with developing countries are unusually secretive and require borrowers to prioritise repayment of Chinese state-owned banks ahead of other creditors, a study of a cache of such contracts showed. The researchers at AidData, the Washington-based Center for Global …

China's Debt-trap Diplomacy? Beijing Delays Kenya's $245 Million Debt in 'Repayment Holiday'
3 years, 10 months ago

China's Debt-trap Diplomacy? Beijing Delays Kenya's $245 Million Debt in 'Repayment Holiday'

News 18  

The Chinese government has postponed Kenya’s debt repayments worth $245 million due over the next six months in a ‘debt repayment holiday’ in what is seen as another example of Beijing’s debt-trap diplomacy. According to reports, Chinese loans comprised 21 per cent of Kenya’s external debt at the end of June 2020, compared with the World Bank’s 25 per cent. …

Zambia says it will default on debt owed private investors
4 years, 1 month ago

Zambia says it will default on debt owed private investors

Associated Press  

LUSAKA, ZAMBIA — Zambia’s government said it would miss a Friday deadline to clear debt owed to external investors who rejected the country’s request for deferral of an overdue $42.5 million interest payment. The southern African country had to pay up by Saturday to avoid becoming the first African nation to default amid the coronavirus pandemic after repeatedly failing to …

Debt as Chinese weapon?
4 years, 4 months ago

Debt as Chinese weapon?

The Hindu  

Declared by the United States and its allies as the leading threat to global stability, China has been accused of transgressions varying from stealing hi-tech secrets, spying and interfering in domestic politics of other countries to spreading viruses. On the other hand, lending to overseas investment and construction projects that can be included under the BRI, is estimated at around …

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