Report: China Lacks Comprehensive Debt Relief Strategy

Source: State Administration of Foreign Exchange (SAFE) of China and authors’ depiction

A new report by the International Institute of Green Finance (IIGF) at the Central University of Economics and Finance in Beijing appears to echo some of the same themes that emerged from Boston University’s Overseas Chinese Lending Database, specifically related to an apparent sharp decline in Chinese lending to countries along the Belt and Road Initiative (BRI).

The paper, written by researchers Yue Mengdi and Christoph Nedopil Wang, concluded that since 2018, “China’s newly-issued loans to the rest of the world have decreased significantly” and confirm that borrowers are finding it increasingly difficult to service existing loans.

  • Get a daily email packed with the latest news and analysis from Africa, Asia, and across the Global South.
  • Read exclusive insights on the key trends shaping China’s relations across the Global South.
  • Full access to the News Feed that provides daily updates on Chinese engagement in the Global South.

China, Africa and the Global South... find out what’s happening.

Subscribe today for unlimited access.

OR

Already a subscriber? Log in Click Here to Learn More
by Eric Olander

Most Read

1
Developing Countries’ Debt Servicing Costs to China Are Significant, but Nowhere Near as Much as Other Creditors
2
Uncertainty Roils Minerals Markets
3 From J-10C to Kaan? Indonesia’s Fighter Jet Deal With Turkey Shocks Chinese Military Fans
4 Chinese Military Fans Discuss Why Indonesia Bought Rafale Instead of J-10C
5 Chinese Scholars See Russia’s Venezuela Strategy as a Model of Hybrid Power Projection in the U.S.’ Backyard
6
Indonesia Goes Nuclear, Taps China and Russia for Modular Reactors

You Might Like

Kenyan Borrowing From Japan Surges as Chinese Lending Slows

New data from the National Treasury in Nairobi revealed a dramatic surge in borrowing from Japan, up 162% to more than $1.3 billion during the period of June 2018 to June 2019. The ...

World Bank: China Sinks Further Into Debt While Investors Seem to Love Buying African Sovereign Bonds

On average, the external debt burden of low and middle-income countries remains moderate. The ratio of external debt to GNI averaged 26 percent at the end of 2018, unchanged from the prior year ...

Kenya Looks Beyond China for New Sources of Development Finance

Since the new year, Kenya has taken some rather bold steps to reduce its borrowing costs and ensure that new loans are “fairly priced.” The Treasury is seeking to refinance large portions of ...

How is China Going to Approach the Debt Crisis in Africa?

One of the big questions around the burgeoning debt crisis in Africa is how will China respond? With an estimated $152 billion of outstanding loans on the continent, Beijing is by ...

What is The China-Global South Project?

Independent

The China-Global South Project is passionately independent, non-partisan and does not advocate for any country, company or culture.

News

A carefully curated selection of the day’s most important China-Global South stories. Updated 24 hours a day by human editors. No bots, no algorithms.

Analysis

Diverse, often unconventional insights from scholars, analysts, journalists and a variety of stakeholders in the China-Global South discourse.

Networking

A unique professional network of China-Africa scholars, analysts, journalists and other practioners from around the world.

More about CGSP

[ATTENTION SUBSCRIBERS] Delivery of the daily email newsletter will resume on Monday, January 5th.

Got it!
X