news agency
Experts predict ‘very long hardship’ for China’s debtors

Experts predict ‘very long hardship’ for China’s debtors

This material (information) was produced, distributed and (or) sent by a foreign agent of RS-Balt JSC or relates to the activities of a foreign agent of RS-Balt JSC. 18+

China has become the world’s largest creditor to developing economies, writes Bloomberg. Beijing is now using its own central bank’s massive $3.3 trillion reserves as a source of emergency loans to bail out debt-strapped states, some of which owe China itself.

Such data are provided in the results of a study by World Bank economists, the AidData research project at the College of William and Mary, Harvard University and the Kiel Institute for the World Economy in Germany, the agency notes. The study’s co-author, former World Bank chief economist Carmen Reinhart, criticized China’s central bank policy.

Reinhart said there will be “a very long period of debt hardship for these countries,” and China’s role at this stage “is to avoid solving the problem.”

US officials have issued similar warnings, stressing that Beijing has lured poor countries into a debt trap. “China has come in and created a lot of debt,” White House adviser Amos Hochstein said in late March. According to him, the IMF and other states are now receiving requests for assistance from China’s debtors.

Source: Rosbalt

You may also like

Latin America and order

Latin America and order

The year 2023 will be difficult for Latin American economies. Regardless of the ideology of

Hot News

TRENDING NEWS

SUBCRIBE

Lorem ipsum dolor sit amet con sectetur adipiscing

follow us