A recent study conducted by researchers from the World Bank, Harvard Kennedy School, AidData, and the Kiel Institute for the World Economy has revealed that China spent approximately $240 billion from 2008 to 2021 bailing out 22 developing countries that had difficulty repaying loans taken for Belt and Road infrastructure projects.
Buy Prime Test Series for all Banking, SSC, Insurance & other exams
A recently published study shows that from 2008 to 2021, China provided approximately $240 billion to bail out 22 developing nations that encountered challenges in paying back loans obtained for the Belt and Road infrastructure projects.
The report further reveals that around 80 per cent of this bailout money was spent from 2016 to 2021, with middle-income countries like Pakistan, Argentina, and Mongolia being the primary beneficiaries.
Argentina received the highest amount of $111.8 billion, followed by Pakistan with $48.5 billion and Egypt with $15.6 billion. The study also highlights that China’s spending on Belt and Road infrastructure projects has reduced since 2016 due to many projects’ underperformance.
The bailout money of $240 billion was sourced from various channels, with approximately $170 billion coming from the People’s Bank of China (PBOC) swap lines that included countries such as Suriname, Sri Lanka, and Egypt.
Chinese state-owned banks also provided $70 billion in the form of bridge loans or balance of payments support, while the rollovers for both these types of loans amounted to $140 billion.
You may also read this:
From the sprawling plains of the Midwest to the sun-kissed shores of the Pacific, the…
The Indian political landscape has lost a seasoned leader with the passing of V. Srinivas…
The Badminton World Federation (BWF) has announced that India will host the prestigious 2025 BWF…
In the mosaic of American cities, certain urban centers stand out as bastions of liberal…
In a remarkable achievement, ICICI Bank has etched its name among India's top five companies…
The Government of India has introduced a Floating Rate Bond (FRB) maturing in 2034, with…