China increases bailouts for Belt and Road partners: report
China has increasingly bailed out developing countries struggling to repay Belt and Road Initiative loans, according to a new report published on Tuesday.
Between 2008 and 2021, China issued $240 billion (€221.7 billion) in bailout loans to 22 countries, according to the report. Around 80% of these bailout loans were issued after 2016.
The report was produced by researchers from the World Bank, the Harvard Kennedy School, AidData, based in the United States, and the Kiel Institute for the World Economy, in Germany.
“Beijing is trying to bail out its own banks. That’s why it got into the risky business of international bailout loans,” said Carmen Reinhart, a former chief economist at the World Bank and one of the study’s authors.
Which countries received bailouts from China?
According to the report, Argentina received the largest number of bailout loans from China, totaling $111.8 billion.
It was followed by Pakistan with $48.5 billion and Egypt with $15.6 billion.
Other countries that received significant sums include Mongolia, Sri Lanka and Suriname.
Source: DW
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