China Facts: Chinese BRI - risk of debt distress in eight countries

China’s ambitious Belt & Road Initiative (BRI) creates potential debt risks in participating countries. The researchers say that out of the 68 countries that China lists as potential BRI participants, 23 were already at “quite high” risk of debt distress. Eight of these 23 countries could face difficulties servicing their debt because of future financing of BRI projects. There is also concern that debt problems will create an unfavorable degree of dependency on China as a creditor. The countries most at risk are Djibouti (Djibouti is the site of China’s first overseas military base), the Maldives, Laos, Montenegro, Mongolia, Tajikistan, Kyrgyzstan and Pakistan.*) 


*) Research by the Washington-based Center for Global Development, March 2018













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Hans Henrik Pontoppidan
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