Country, estimated to be owed up to $1.5trn, is increasing penalties for late payments and cutting back on infrastructure projects
China has become the world’s biggest debt collector, as the money it is owed from developing countries has surged to between $1.1tn (£889bn) and $1.5tn, according to a new report. An estimated 80% of China’s overseas lending portfolio in the global south is now supporting countries in financial distress.
Since 2017, China has been the world’s biggest bilateral lender; its main development banks issued nearly $500bn between 2008 and 2021. While some of this predates the belt and road initiative (BRI), Beijing’s flagship development programme has mobilised much of the investment in developing countries.
But a new report by researchers at the AidData research lab at William & Mary, a public university in Virginia, found that China, the world’s second largest economy, is now navigating the role of international debt collector as well as being a bilateral funder of major infrastructure projects.
They beat out the IMF? Impressive.
Yeah they went to those counties that for some unimaginable reason don’t trust the IMF.
Meet the new boss, same as the old boss.
I mean I guess but the imf charges 2% interest on loans. China charges 5%
Alright: meet the new boss, slightly worse than the old boss, maybe.
China is way way worse than the IMF. The IMF restructures the debts of distressed countries to help them avoid bankruptcy. China sabotages this sort of help by refusing to negotiate on the same terms as other creditors, preventing the IMF from doing it’s job.