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 of government revenue to paying off foreign debt. That refusal added to the drain on Zambia’s foreign cash reserves, the stash of mostly U.S. dollars that it used to pay interest on loans and to buy major commodities like oil. And actually, things are much worse.’” Solution Some poor countries struggling to repay China now find themselves stuck in a kind of loan limbo: China won’t budge in taking losses, and the IMF won’t offer low-interest loans if the money is just going to pay interest on Chinese debt.

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History of this topic

Pakistan Seeks Extended Debt Maturities to Ease Electricity Price Hikes
2 months ago

Pakistan Seeks Extended Debt Maturities to Ease Electricity Price Hikes

Live Mint  

Pakistan's finance minister expresses optimism over China's response to its request to lengthen maturities for debt involved in the Belt and Road Initiative. The country is seeking breathing room to lower electricity prices, which have been significantly higher in recent years. Pakistan has seen a period of stability after securing a new $7 billion loan program from the IMF, and …

Pakistan Wants China to ‘Reprofile’ Debt to Help Support Reforms
4 months, 3 weeks ago

Pakistan Wants China to ‘Reprofile’ Debt to Help Support Reforms

Live Mint  

Pakistan has sought Chinese help to “reprofile” its debts with rollovers and maturity extensions to create more breathing room for economic reforms it’s seeking to enact under a new International Monetary Fund’s $7 billion loan program. Discussed with central bank officials during a recent visit to Beijing was a proposal to extend the maturity of debt for nine power plants …

Pay down time
6 months, 2 weeks ago

Pay down time

China Daily  

SHI YU/CHINA DAILY The Chinese government still has ample policy space to deal with the country's debt problems The scale of China's debt and its ratio to GDP have increased rapidly over the past decade. After China's industrialization peaked, capital-intensive enterprises no longer borrowed heavily, and local government financing platforms and households became the main sources of new debts. China …

Debt owed by Pakistan, Sri Lanka and Bangladesh to China rise to record levels: Data
7 months, 2 weeks 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 …

Pakistan is out of friends and out of money
10 months ago

Pakistan is out of friends and out of money

Hindustan Times  

PAKISTAN’S ELECTION on February 8th featured state-of-the-art avatars and TikTok videos, but the question it poses evokes an old theme. Pakistan’s most popular politician, Imran Khan, a celebrity ex-cricketer turned rabble-rouser, was imprisoned on bogus charges at the army’s behest before the poll, even though he had at one time worked with the generals. China remains Pakistan’s “eternal friend” but …

In Pakistan, old hopefuls jostle to turn around struggling economy
10 months, 2 weeks ago

In Pakistan, old hopefuls jostle to turn around struggling economy

Al Jazeera  

Pakistani voters head to the polls on Thursday amid a deep-seated economic crisis. Inflation, which reached nearly 30 percent in December, has been climbing since the start of last year after Pakistan’s central bank agreed to liberalise its exchange rate as part of a pre-existing IMF programme. “This will lower Pakistan’s current account deficit as goods from abroad will become …

China agrees to consider restructuring repayment of loans, says Maldives President Muizzu
11 months, 1 week ago

China agrees to consider restructuring repayment of loans, says Maldives President Muizzu

Firstpost  

Maldives President Mohamed Muizzu said on Saturday that China, the largest external creditor to the country, has agreed to consider restructuring the repayment of loans taken by his country and the governments will initiate negotiations soon. Muizzu told the media in Male after his return from a five-day high-profile state visit to China that he has directly appealed to Chinese …

The $2 trillion interest bill that’s hitting governments
1 year, 1 month ago

The $2 trillion interest bill that’s hitting governments

Live Mint  

The world spent the past decade-plus taking advantage of rock-bottom interest rates to binge on debt. Governments are expected to spend a net $2 trillion paying interest on their debt this year as higher interest rates make borrowing more expensive, up more than 10% from 2022, according to an analysis of International Monetary Fund data by research consulting firm Teal …

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 …

Pakistan’s finance minister says China rolls over $2.4 billion loan for Islamabad for 2 years
1 year, 4 months ago

Pakistan’s finance minister says China rolls over $2.4 billion loan for Islamabad for 2 years

Associated Press  

ISLAMABAD — Pakistan’s finance minister on Thursday said China has rolled over a $2.4 billion loan for the cash-strapped Islamic nation for two years, a move aimed at helping the country overcome one of its worst economic crises. The latest extension in loan maturities by Beijing was a boost to Pakistan’s fragile foreign exchange reserves, which are still only enough …

China agrees to reschedule $2 billion debt of Pakistan
1 year, 5 months ago

China agrees to reschedule $2 billion debt of Pakistan

The Hindu  

China has agreed to reschedule more than $2 billion debt of Pakistan for a period of two years, providing a major relief to the cash-starved country, which is in the process of rebuilding foreign exchange reserves through fresh loans. The $6.5 billion is a publicly guaranteed debt, and more than $2 billion repayments were maturing in two years that China …

Bilawal Bhutto Denies Pakistan Is in China's Debt Trap, Says Beijing Provides 'Soft Loans'
1 year, 5 months ago

Bilawal Bhutto Denies Pakistan Is in China's Debt Trap, Says Beijing Provides 'Soft Loans'

News 18  

A day after IMF provided a long-awaited bail-out to cash-strapped Pakistan, Foreign Minister Bilawal Bhutto Zardari dismissed claims that his country is falling into China’s debt trap. In the Nikkei interview, Bhutto Zardari emphasized that most of China’s assistance to Pakistan comes in the form of investments or soft loans, refuting concerns of immediate default on debt despite the ongoing …

Pakistan receives $1 billion from China
1 year, 6 months ago

Pakistan receives $1 billion from China

The Hindu  

Cash-strapped Pakistan has received $1 billion from its close ally China to support its critically low foreign reserves amidst the uncertainty to revive a stalled International Monetary Fund loan. Earlier, Finance Minister Ishaq Dar said Pakistan had paid back $1 billion to China last Monday against a due amount of $1.3 billion and it was hoped that the amount would …

Pakistan PM Shehbaz Sharif says China will save the country from bankruptcy
1 year, 6 months ago

Pakistan PM Shehbaz Sharif says China will save the country from bankruptcy

Op India  

On Friday, May 26, Shehbaz Sharif, Pakistan’s prime minister, stated that an agreement with the International Monetary Fund has not been reached, but that China’s backing will be critical in keeping the country from default. PM Sharif stated in his address to industrialists and businesses in Karachi that Pakistan has ‘successfully fulfilled all of the rigorous conditions imposed by the …

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 loans pushing world’s poorest countries to brink of collapse
1 year, 7 months ago

China’s loans pushing world’s poorest countries to brink of collapse

Associated Press  

A dozen poor countries are facing economic instability and even collapse under the weight of hundreds of billions of dollars in foreign loans, much of them from the world’s biggest and most unforgiving government lender, China. Countries in AP’s analysis had as much as 50% of their foreign loans from China and most were devoting more than a third of …

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 loans to Pak, Lanka and other nations worth $240bn in 2 decades: Report
1 year, 8 months ago

China loans to Pak, Lanka and other nations worth $240bn in 2 decades: Report

Hindustan Times  

China helped 22 developing countries which were at the risk of default over the past two decades, a report said. Beijing handout out $240 billion worth of bailout loans to nations which included Belt and Road Initiative countries such as Sri Lanka, Pakistan and Turkey that have received Chinese loans for infrastructure development, the study pointed out. "Beijing has targeted …

Nepal’s economic ties with China raise concerns about ‘debt trap diplomacy’
1 year, 8 months ago

Nepal’s economic ties with China raise concerns about ‘debt trap diplomacy’

Live Mint  

China's ambition to establish its dominance in the South Asian region has been a long-standing strategy. As per a report by the Nepalese daily Pardafas, China, which is rooted in the "Middle Kingdom" complex, is using tactics to achieve its objectives by trapping Nepal in a debt cycle. The recently inaugurated Pokhara International Airport was funded by a loan of …

IMF deal in jeopardy, only China can bailout Pakistan: Report
1 year, 9 months ago

IMF deal in jeopardy, only China can bailout Pakistan: Report

Live Mint  

A US bank said that China can rescue crisis-hit Pakistan because of its close ties with the country, while the International Monetary Fund and Pakistan are still in tough negotiations on financial aid for economic recovery, according to a report by Dawn news. “Whether and when Pakistan can receive the next installment from the IMF is still up in the …

Pak’s economy in ’shambles’; China is lending a hand
1 year, 9 months ago

Pak’s economy in ’shambles’; China is lending a hand

Live Mint  

Pakistan's external foreign debt amounts to $126 billion, out of which $30 billion is held by China, according to the International Monetary Fund data. This amount is three times larger than Pakistan's IMF debt of $7.8 billion and exceeds its borrowings from the World Bank and Asian Development Bank altogether. According to a 2019 study by the Jang Group and …

The fall and fall of Pakistan
1 year, 9 months ago

The fall and fall of Pakistan

New Indian Express  

How it all came tumbling down 1958-68: General Ayub’s non-liberal policies of the capitalist model increases income inequality 1970s: During Zulfiqar Ali Bhutto’s reign, there was a recession in exports, the partition of East Pakistan, the floods of 1974 and locust attacks. His nationalisation policies became the major reason for the loss of industrial units and private investment 1998: Pakistan …

With China’s funding, is Pakistan headed for Sri Lanka-like financial crisis?
1 year, 9 months ago

With China’s funding, is Pakistan headed for Sri Lanka-like financial crisis?

Live Mint  

Pakistan has receive a $700 million loan from China Development Bank, which will boost Pakistan's foreign exchange reserves by 20%. Additionally, China charges higher interest rates than other lenders, which adds to Pakistan's debt servicing costs. In the fiscal year 2021-2022, Pakistan paid around $150 million in interest to China for using a $4.5 billion Chinese trade finance facility. Will …

Explained: How Pakistan is following Sri Lanka's footsteps in China's debt trap
1 year, 10 months ago

Explained: How Pakistan is following Sri Lanka's footsteps in China's debt trap

Firstpost  

China, which is Pakistan’s single-largest creditor — owning 30 per cent of its total external debt — is set to grant a $700 million loan through its China Development Bank. The loan, which Beijing will grant through its China Development Bank is set to boost Pakistan’s forex reserves by 20 per cent. Let’s take a closer look at how this …

ECONOMIC PERSPECTIVES | Pakistan likely to go the Sri Lanka way, default on external debt payments
1 year, 10 months ago

ECONOMIC PERSPECTIVES | Pakistan likely to go the Sri Lanka way, default on external debt payments

The Hindu  

Published : Feb 23, 2023 10:40 IST Across the world, many lower- and middle-income countries are struggling with balance of payments difficulties that are undermining their ability to service their external debt. “The policies the IMF prescribes when it is approached for balance of payments support in situations of stress contribute to worsening the situation in “assisted” countries. That release, …

Pakistan: China approves USD 700 million loan to cash-strapped country
1 year, 10 months ago

Pakistan: China approves USD 700 million loan to cash-strapped country

India TV News  

Pakistan: The all-weather ally of China has approved a major loan of a whopping price to the cash-strapped country 'Pakistan'. The Finance Minister of Pakistan, Ishaq Dar on Wednesday announced that China has approved a loan of USD 700 million. The money bill was passed aiming to fulfill the demands set by the International Monetary Fund for seeking a USD …

Will Pakistan's economic crisis affect Beijing-Islamabad relationship? China's quandary grows
1 year, 10 months ago

Will Pakistan's economic crisis affect Beijing-Islamabad relationship? China's quandary grows

India TV News  

Pakistan's economic crisis: China which holds Islamabad’s largest debt on Monday said it backed measures taken by its "all-weather friend" Pakistan to tide over the disastrous situation and hoped it will, in the end, pull through. Pakistan at the verge of default Pakistan’s current account deficit shrank 90.2 per cent to USD 0.24 billion in January from USD 2.47 billion …

China in Quandary as Pakistan Faces Debt Default After Steep Fall in Forex Reserves
1 year, 10 months ago

China in Quandary as Pakistan Faces Debt Default After Steep Fall in Forex Reserves

News 18  

Watching warily Pakistan plunging into the worst economic crisis with prospects of defaulting on foreign loans, China which holds Islamabad’s largest debt on Monday said it backed measures taken by its “all-weather friend” to tide over the disastrous situation and hoped it will, in the end, pull through. Pakistan’s current account deficit shrank 90.2 per cent to USD 0.24 billion …

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 …

Data | Why is Pakistan’s economy collapsing? Explained in charts
1 year, 10 months ago

Data | Why is Pakistan’s economy collapsing? Explained in charts

The Hindu  

Pakistan’s economy is on the brink of collapse. Foreign exchange reserves with the State Bank of Pakistan dipped to $3.08 billion in the week ending January 27, 2023. Chart 3 shows the week-wise foreign exchange reserves held by Pakistan’s central bank. Chart 6 shows financial year-wise Pakistan’s total debt and liabilities in billion PKR. Source: State Bank of Pakistan, Economic …

Pakistan economic crisis: Military, political leadership cut sorry figures as Islamabad drowns in debt
1 year, 10 months ago

Pakistan economic crisis: Military, political leadership cut sorry figures as Islamabad drowns in debt

Firstpost  

There is a very real possibility that Pakistan could fall, and fall badly. A mountain of debt – the figures Pakistan’s tumultuous history has seen it hovering on the brink of crisis several times, but this is the first time it’s slipping into possible default. Pakistan is already allotted Rs3.5-Rs3.9 trillion – i.e 4.5 per cent-5.0 per cent of GDP …

Why China cannot write off Sri Lanka’s debt despite leniency by IMF
1 year, 11 months ago

Why China cannot write off Sri Lanka’s debt despite leniency by IMF

Firstpost  

A group of Buddhist monks from Sri Lanka offering prayers at the Bodh Gaya pilgrim centre in India called for Tibetan spiritual leader Dalai Lama to visit their country as it would boost religious tourism and thus help address the nation’s economic crisis. At what looks like a relatively pragmatic level, leading economists from the world over have urged international …

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 …

Pak, Lanka, Bangladesh, Laos & More: China's 'Debt-Trap' Pushing Vulnerable Nations to Financial Crisis?
2 years, 4 months ago

Pak, Lanka, Bangladesh, Laos & More: China's 'Debt-Trap' Pushing Vulnerable Nations to Financial Crisis?

News 18  

After Pakistan and Sri Lanka falling under severe debts of Chinese loans, Bangladesh has now sounded an alert, warning developing countries to think twice over taking more loans through China’s Belt and Road Initiative as global inflation and slowing growth add to the strains on indebted and vulnerable emerging markets. While experts have been warning for many years the low- …

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'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. …

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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