China as an international creditor
Kaaresvirta, Juuso; Laakkonen, Helinä (24.03.2021)
Numero
5/2021Julkaisija
Bank of Finland
2021
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-202103241168Tiivistelmä
China became the world’s largest lender to emerging and developing economies over the past decade. At the same time, concerns on the debt sustainability of many of these countries have grown. Some countries have found themselves struggling to repay their loans and China has had to renegotiate debt restructurings bilaterally. As covid-19 pandemic hit many of the borrowers hard in 2020, China committed with all other G20 countries to the Debt Service Suspension Initiative (DSSI) to temporarily suspend official bilateral debt payment of 73 beneficiary countries. While China’s overseas lending remain opaque, there is little evidence that China intentionally practices “debt-trap diplomacy.”
Sisällysluettelo
Contents
Abstract ..... 3
1. Introduction..... 4
2. China’s external lending grew rapidly during the past decade ...... 4
3. Lack of transparency in lending by state-owned entities..... 5
4. EMDEs and the covid shock...... 8
5. Limited evidence on China’s “Debt trap diplomacy”...... 10
6. Conclusion ..... 11
References...... 12
Abstract ..... 3
1. Introduction..... 4
2. China’s external lending grew rapidly during the past decade ...... 4
3. Lack of transparency in lending by state-owned entities..... 5
4. EMDEs and the covid shock...... 8
5. Limited evidence on China’s “Debt trap diplomacy”...... 10
6. Conclusion ..... 11
References...... 12