With a growing number of developing countries facing acute debt distress, many to Chinese creditors, Beijing may soon be forced to abandon its long-held policy of refusing to cancel concessional and commercial loans.
Chinese creditors have been aggressively rescheduling billions of dollars of loans to countries in the Global South but with the economic crisis worsening, simply deferring repayments may no longer be enough to stave off default by some borrowers, according to a recent Financial Times report:
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