{"id":1392759,"date":"2022-03-21T19:30:24","date_gmt":"2022-03-21T23:30:24","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1392759"},"modified":"2022-03-21T19:30:39","modified_gmt":"2022-03-21T23:30:39","slug":"study-china-to-collect-14-billion-in-debt-servicing-costs-from-worlds-poorest-nations-in-2022","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/study-china-to-collect-14-billion-in-debt-servicing-costs-from-worlds-poorest-nations-in-2022\/","title":{"rendered":"Study: China to Collect $14 Billion in Debt Servicing Costs from World\u2019s Poorest Nations in 2022"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fstudy-china-to-collect-14-billion-in-debt-servicing-costs-from-worlds-poorest-nations-in-2022%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1392759&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p class=\"subheading\"><span>According to a report published by the Green Finance and Development Center at Fudan University in Shanghai this weekend, the world\u2019s poorest nations will pay China almost $14 billion in 2022 to service their debts.<\/span><\/p>\n<p><span>China is now the largest single creditor for developing nations, topped only by the <\/span><a href=\"https:\/\/ida.worldbank.org\/en\/ida\"><span>International Development Association<\/span><\/a><span> (IDA) established by the World Bank in 1960. The IDA has dozens of contributing members, including the European powers, the United Kingdom, and the United States.<\/span><\/p>\n<figure id=\"D-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"M-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"gmxrevmore\" class=\"H\"><\/figure>\n<p><span>The Fudan University study found the world\u2019s 68 poorest nations owe $110 billion to Chinese lenders, and the cost of servicing that debt will exceed two percent of GDP for eight of them. The most indebted nation, Angola, will spend fully five percent of its national income servicing Chinese debt this year.<\/span><\/p>\n<p><span>The Fudan researchers suggested China \u201chas more responsibility and opportunities\u201d to restructure this immense debt from developing nations than any other country.<\/span><\/p>\n<div id=\"attachment_9342412\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/media.breitbart.com\/media\/2018\/09\/GettyImages-1025741828.jpg\"><\/a><\/p>\n<p class=\"wp-caption-text\"><em>Zambia\u2019s former President Edgar Lungu (L) shakes hands with China\u2019s President Xi Jinping before their bilateral meeting at the Great Hall of the People on September 1, 2018. (NICOLAS ASFOURI\/AFP\/Getty Images)<\/em><\/p>\n<figure id=\"M-ROS-B2\" class=\"a8d\"><\/figure>\n<\/div>\n<p><span>Reporting on their findings, <\/span><span>Bloomberg News<\/span><span> <a href=\"https:\/\/www.scmp.com\/news\/china\/diplomacy\/article\/3171223\/poorest-nations-pay-china-us14-billion-service-debts-2022\">noted<\/a> that China suspended servicing charges on $2 billion in debt from poorer nations during the height of the Wuhan coronavirus pandemic, but that program ended last year.<\/span><\/p>\n<div id=\"attachment_16424756\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/03\/China-in-Djibouti-Africa.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-16424756\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/03\/China-in-Djibouti-Africa.jpg\" alt=\"\" width=\"640\" height=\"480\" \/><\/a><\/p>\n<p class=\"wp-caption-text\"><em>Djibouti\u2019s President Ismail Omar Guelleh, third from right, talks to Chinese counterpart Hu Jintao, unseen, following a welcoming ceremony at the Great Hall of the People in Beijing Wednesday, July 18, 2012. (AP Photo\/Diego Azubel)<\/em><\/p>\n<\/div>\n<p><span>The World Bank <\/span><a href=\"https:\/\/www.devex.com\/news\/china-is-owed-37-of-poor-countries-debt-payments-in-2022-world-bank-102463#:~:text=Economic%20development-,China%20is%20owed%2037%25%20of%20poor%20countries&#039;%20debt,payments%20in%202022%3A%20World%20Bank&#038;text=Of%20the%20%2435%20billion%20that,according%20to%20the%20World%20Bank.\"><span>estimated<\/span><\/a><span> in January that 37 percent of the $35 billion in debt service owned by the world\u2019s 74 lowest-income nations would be paid to Chinese entities.<\/span><\/p>\n<div id=\"attachment_16043420\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/03\/Laos-China.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-16043420\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/03\/Laos-China.jpg\" alt=\"BEIJING, CHINA JANUARY 6: Laos Prime Minister Thongloun Sisoulith, left, and Chinese President Xi Jinping walk together before a meeting at the Great Hall of the People on January 6, 2020 in Beijing, China. (Photo by Mark Schiefelbein-Pool\/Getty Images)\" width=\"640\" height=\"480\" \/><\/a><\/p>\n<p class=\"wp-caption-text\"><em>Laos former Prime Minister Thongloun Sisoulith, left, and Chinese President Xi Jinping walk together before a meeting at the Great Hall of the People on January 6, 2020 in Beijing, China. (Photo by Mark Schiefelbein\/Getty Images)<\/em><\/p>\n<\/div>\n<p><span>World Bank President David Malpass suggested the wealthy Western creditors of the IDA were more flexible about restructuring debt and helping poor nations make their payments than Chinese banks and private-sector lenders. Since the portion of debt from developing nations held by those flexible IDA members is now \u201csmall,\u201d Malpass said the debt burden has become \u201ca challenge for the world.\u201d<\/span><\/p>\n<figure id=\"M-ROS-B3\" class=\"a8d adSo\"><\/figure>\n<p><span>The <\/span><span>BBC<\/span><span> in January <a href=\"https:\/\/www.bbc.com\/news\/59585507\">quoted<\/a> a report from the AidData project at William &#038; Mary University that found \u201chalf of China\u2019s lending to developing countries is not reported in official debt statistics,\u201d so the financial situation in those countries is likely even worse than reports based on official numbers would indicate.<\/span><\/p>\n<p><span>\u201cThere are now more than 40 low and middle-income countries, according to AidData, whose debt exposure to Chinese lenders is more than 10% of the size of their annual economic output (GDP) as a result of this \u2018hidden debt,\u2019\u201d the BBC wrote, calculating the debt loads of Djibouti, Laos, Zambia, and Kyrgyzstan as nearly 20 percent of their annual GDP.<\/span><\/p>\n<p><span>These bookkeeping tricks are made possible because China\u2019s Belt and Road infrastructure loans are largely made through nominally \u201cprivate\u201d banks, so they are not reported to entities such as the World Bank and International Monetary Fund (IMF) the way government-to-government transfers would be.<\/span><\/p>\n<p><span>\u201cChina does not publish records of its foreign loans, and the majority of its contracts contain non-disclosure clauses which prevent borrowers from revealing their contents,\u201d the report added.<\/span><\/p>\n<p><span>AidData <\/span><a href=\"https:\/\/www.theguardian.com\/world\/2021\/sep\/30\/42-nations-owe-china-hidden-debts-exceeding-10-of-gdp-says-report\"><span>spotlighted<\/span><\/a><span> a particularly striking example of \u201chidden debt\u201d to China: the $5.9 billion China-Laos railway project, which has been kept entirely off the books in Laos, but imposed unofficial debt on Laos equal to a third of its GDP.<\/span><\/p>\n<p><span>\u201cBeijing is more willing to bankroll projects in risky countries than other official creditors, but it is also more aggressive than its peers at positioning itself at the front of the repayment line,\u201d AidData noted.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to a report published by the Green Finance and Development Center at Fudan University in Shanghai this weekend, the world\u2019s poorest nations will pay China almost $14 billion in<\/p>\n","protected":false},"author":41,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1392759","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1392759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1392759"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1392759\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1392759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1392759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1392759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}