China has greatly increased aid loans to borrowing countries in the “Belt and Road”

The latest research report of the World Bank shows that China ’s emergency support for borrowing countries under the“ Belt and Road ”infrastructure project has increased significantly.

The Wall Street Journal reported that the research report also stated that China often provided by the dilemma of borrowing countries, which is often a large scale of assistance, which means that China has actually established a set of sets of international monetary fund organizations.(IMF) New international rescue loan system that is tied with other Western institutions.

Reporting Researchers said that China is willing to provide more loans from borrowing countries with difficult situations, so that the latter does not need to make pain economic reforms for the time being, but this may extend the dilemma of these countries.They said that the opaque clauses around Chinese loans may also complicate debt reduction and exemption, because it covers the true financial situation of borrowing countries.

At present, liability countries are plagued by rising interest rates, high inflation, and new financial instability risks. At the same time, decision makers are still trying to deal with the impact of three US banks.

According to the statistics of the author of the author Sebastian Horn, Brad Parks, Carmen Reinhart, and Christoph Trebesch, the statistics of the past ten yearsIn China, through the issuance of new loans, exhibitions on old loans, and reaching a currency swap agreement with the Central Bank of China and the Central Bank of China, it provided the foreign government and the central bank with an emergency of more than 230 billion US dollars (the same below, about S $ 305.6 billion)assistance.

It is reported that as the debt problems of low -income countries have deteriorated in recent years, these financial assistance has steadily increased.In 2021, China ’s emergency assistance in borrowing countries reached 40 billion US dollars, an increase of 32%over 2020, and it was more than 40 times the amount of assistance in 2011.

According to this report, the aid countries include Pakistan, Angola, Sri Lanka, Venezuela and more than ten other countries. Under the "Belt and Road" initiative, which cost $ 1 trillion in China, these aid countries are from it.The borrowing of asset banks provides funds for highways, railways and bridge construction.A total of 22 countries have received emergency assistance in a form of form.

The Executive Director of William and Marie College research laboratory Aiddata in Virginia, Parker, told the Wall Street Journal that as long as debt issues continue to impact the debt country, these aid will continue.The laboratory tracks research and development finance.

Pax said: "I think, as long as the debt distress of countries along the Belt and Road Initiative is still there, this assistance will continue.