When it was announced in 2023 that the African Union would become a full member of the G20, I darkly joked on a podcast that the AU’s entry into the body could very well mark the moment the G20 lost its status as one of the most important global coordination forums. Mark my words, I said, soon The Economist will be like “Uhhh, the G20 is OVER – it’s the ...
Category: Loans
Constructive Responses to Net Negative Transfers: What Next for China’s Financial Relationship With Low-Income Countries
By Rebecca Ray In the last few years, China’s net debt transfers (new disbursements minus repayments) to low-income countries have turned negative. This trend means that poor countries are now repaying China more each year for past years’ lending than they ...
U.S. Is Top Recipient of Chinese State-Bank Loans: New Data
The U.S. is the top recipient of Chinese state-bank loans and grants, according to new AidData figures that trace more than $200 billion across roughly 2,500 U.S. deals since 2000. The new data emerges despite years of U.S. warnings to ...
Indonesia Raises $842 Million in First-Ever Yuan Bonds
Indonesia raised about $842 million, equal to 6 billion yuan, by selling bonds to international investors denominated in China’s currency, the yuan, for the first time. The sale marks the first time Indonesia has borrowed in yuan. These yuan-denominated bonds ...
Indonesia Weighs Dual Strategies With China to Keep Whoosh High-Speed Rail on Track
Indonesia and China are negotiating with China’s economic planner, the NDRC, to address a funding shortfall for the Jakarta–Bandung high-speed rail project, known as "Whoosh." The gap emerged after costs rose by about $1.2 billion, while ticket sales fell short of loan payments.
How China Really Secures Its Loans to Developing Countries
The "debt trap" meme claims that China is intentionally lending vast sums of money to poor developing countries in Africa, and elsewhere, with the express intent to seize physical assets in those countries when they inevitably can't repay their debts.
New Chinese Development Funding for Southern Africa
The Development Bank of Southern Africa (DBSA) signed a $293 million loan facility agreement with China Development Bank. The funding will support energy, infrastructure, water, health, and manufacturing projects on the continent. The agreement was signed on the sidelines of the BRICS summit in Brazil earlier this ...
A Peer-to-Peer Pivot in China’s Overseas Development Finance
By Rebecca Ray In 2024, China extended $6.1 billion in 20 commitments in public and publicly guaranteed (PPG) loans, according to a new update to the China’s Overseas Development Finance (CODF) Database managed by the Boston University Global Development Policy ...
With Chinese Backing, Cameroon Opens Second Phase of Kribi Deep-Sea Port
Cameroon opened the second phase of its Kribi deep-sea port earlier this month, marking a major step in the country’s efforts to strengthen its logistics infrastructure and expand its role in regional trade. The government completed the $650 million ...
With Chinese Backing, Cameroon Opens Second Phase of Kribi Deep-Sea Port
Cameroon opened the second phase of its Kribi deep-sea port earlier this month, marking a major step in the country’s efforts to strengthen its logistics infrastructure and expand its role in regional trade. The government completed the $650 million ...
Indonesia Announces BRICS New Development Bank Membership, Eyes Infrastructure Funding
Indonesia on Tuesday announced that it will join the BRICS-backed New Development Bank NDB, headquartered in Shanghai, and has proposed 77 projects for funding. The move strengthens Jakarta’s financial ties with BRICS economies as the bloc expands ...
Bolivia Inaugurates Steel Plant Built With Chinese Loan
Short on foreign currency, Bolivia inaugurated a steel plant Monday that it hopes will reduce its reliance on metal imports, thanks to a loan from China. The Mutun megaproject in Puerto Suarez, near Bolivia's border with Brazil, was built at a ...
China Considering New Loan Terms for Bangladesh: Media
The Bangladeshi media is reporting that China has “agreed in principle” to extend the repayment period of a loan from 20 to 30 years. This follows a meeting between Bangladesh’s Foreign Adviser, Touhid Hossain, and Foreign Minister Wang Yi on Tuesday. Bangladesh ...