China’s BRI problem: From builder to debt collector
“The Laos–China Railway, the Jakarta–Bandung High-Speed Rail in Indonesia, the Mombasa–Nairobi Standard Gauge Railway in Kenya, the upgrading of Piraeus Port in Greece, and the Lahore Rail Transit Line in Pakistan represent just a few among the hundreds of infrastructure projects completed and now operational under the BRI framework, which gives a glimpse of the initiative’s geopolitical and geoeconomic impact across the world. China’s influence in the region and the world has rapidly increased to accompany its push for BRI implementation.”
“According to the report, in 2025, 75 of the world’s poorest and most vulnerable countries will make record high debt repayments to China amounting to US$22 billion. The report found that China is expected to be more debt collector than banker to the developing countries for the rest of this decade, as debt servicing costs (repayments and interest) on the BRI-affiliated projects from the 2010s now far outstrip new loan disbursements. It warned that the high debt burden facing the developing countries will slow down their development and hamper poverty reduction while stoking political and social instability risks.”
https://www.thinkchina.sg/economy/chinas-bri-problem-builder-debt-collector
See also: ‘Peak repayment: China’s global lending’ – Lowy Institute
https://interactives.lowyinstitute.org/features/peak-repayment-china-global-lending/