Chinese loans to poor countries are surging

[Marks199]

Nearly half of China’s credit is hidden; much of it goes to vulnerable borrowers

Graphic detail

Jul 12th, 2019

LOAN TALKS with Belarus; funding for bridges in Liberia; a possible gas project in Timor-Leste; accusations of exploitation in Tanzania; a corporate dispute in India; pledges to support the Rwandan private sector. And that was just the past few weeks. Such is China’s frenetic pace in its overseas lending that its outstanding loans, mainly to poorer countries, have gone from almost nothing in 2000 to more than $700bn today, making it the world’s largest official creditor, more than twice as big as the World Bank and IMF combined. Yet tracking the money is difficult because of limited transparency in its disclosures.

A new study by Sebastian Horn and Christoph Trebesch, both of the Kiel Institute for the World Economy, and Carmen Reinhart of Harvard University creates the most comprehensive picture yet. They find that nearly half of China’s lending to developing countries is “hidden”, in that neither the World Bank nor the IMF has data on it. The problem appears most severe for the most vulnerable borrowers. The authors conclude that in its reporting to the Bank for International Settlements, an organization of central banks, China has not disclosed any loans to Iran, Venezuela or Zimbabwe, despite giving them plenty of money over the past 15 years.

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My questions: Is china a stage blue country by its values but in practices its green? What are they trying to achieve with these loans? 

Taken from the economist.

Edited August 23, 2019 by Marks199

[Harikrishnan]

China are giving money to exploit other country. They have given lot of money to pakistan and they are buying lands there in pakistan. Places near to balochistan have been taken by china, chinesse men marrying pakistani womens. Pakistan will soon be chinesse.

[Harikrishnan]