Brief by Shorts91 Newsdesk / 09:42am on 08 Nov 2023,Wednesday International
China has become the world's largest debt collector as over 150 nations that signed up for its Belt and Road Initiative now owe Beijing more than $1 trillion. Nearly 80% of the BRI loans have gone to financially distressed countries. China is now trying to mitigate risks by bringing lending practices in line with international standards and introducing safeguards to ensure repayment. This includes unilaterally sweeping borrowers' currency reserves held in escrow. The BRI was launched in 2013 to fund infrastructure globally but over half the loans are now entering repayment. Experts say three-quarters will be due by 2030. The findings highlight China's growing influence as a major creditor to developing nations.
