China cancels some of its debts owed to 17 African countries

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The decision relates to canceling 23 interest-free loans to 17 African countries whose repayment was delayed in 2021. China Volume Debts Which will be crossed out, nor the names of the countries involved in the decision.

It is noteworthy that Beijing has become one of the main creditors in the world, and since 2010, the Chinese government has tripled its loans, mainly to help underdeveloped or developing countries through an initiative "Belt and Road"It is a platform for international cooperation in infrastructure, trade, investment and finance to connect China with other parts of Asia, the Middle East, Europe and Africa, becoming a direct and explicit competitor to organizations such as the International Monetary Fund and the World Bank.

However, Beijing tends to lend at rates benefit Higher, shorter repayment period, and they also use loans as leverage in exchange for access to a country’s natural resources, or to achieve some geopolitical interest.

Beijing asserts that there has been no case of any country indebted to China, and it has occurred in the so-called"debt trap"That is, lending money to other countries with the aim of controlling their main assets if the latter is unable to pay the debts.

It is worth noting that about 60 percent of China’s external lending goes to countries currently facing severe debt crises, according to World Bank researchers.

The economic crisis caused by the Ukraine crisis, in turn, caused an influx of foreign currency from developing countries that are part of the Silk Road Initiative, increasing the risk of debt default.

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Perhaps the most prominent of these cases is PakistanChinese investments there amount to $62 billion, nearly a fifth of the gross domestic product of Islamabad and Sri Lanka, a country in shambles after defaulting, and China has committed more than $32 billion to it.

Official statements issued by the National Authority for Foreign Exchange in ChinaIt showed that the country recorded $7,102.2 trillion of outstanding foreign debt in local and foreign currencies by the end of March 2022, down 1 percent from the end of 2021.

Quotes New China News Agency (Xinhua) About the authority said that the outstanding foreign debt in local currency accounts for 45 percent of the total, the same as it was at the end of 2021.

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The decision relates to canceling 23 interest-free loans to 17 African countries whose repayment was delayed in 2021. China Volume Debts Which will be crossed out, nor the names of the countries involved in the decision.

It is noteworthy that Beijing has become one of the major creditors in the world. Since 2010, the Chinese government has tripled its loans, mainly to help underdeveloped or developing countries through an initiative.Belt and RoadIt is a platform for international cooperation in infrastructure, trade, investment and finance to connect China with other parts of Asia, the Middle East, Europe and Africa, becoming a direct and explicit competitor to organizations such as the International Monetary Fund and the World Bank.

However, Beijing tends to lend at rates benefit Higher, shorter repayment period, and they also use loans as leverage in exchange for access to a country’s natural resources, or to achieve some geopolitical interest.

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Beijing asserts that there has been no case for any country in debt to China, and it has fallen into the so-called “debt trap”, that is, lending money to other countries with the aim of controlling their main assets if the latter is unable to pay the debts.

It is worth noting that about 60 percent of China’s external lending goes to countries currently facing severe debt crises, according to World Bank researchers.

The economic crisis caused by the Ukraine crisis, in turn, caused an influx of foreign currency from developing countries that are part of the Silk Road Initiative, increasing the risk of debt default.

Perhaps the most prominent of these cases is PakistanChinese investments there amount to $62 billion, nearly a fifth of the gross domestic product of Islamabad and Sri Lanka, a country in shambles after defaulting, and China has committed more than $32 billion to it.

Official statements issued by the National Authority for Foreign Exchange in ChinaIt showed that the country recorded $7,102.2 trillion of outstanding foreign debt in local and foreign currencies by the end of March 2022, down 1 percent from the end of 2021.

Quotes New China News Agency (Xinhua) About the authority said that the outstanding foreign debt in local currency accounts for 45 percent of the total, the same as it was at the end of 2021.

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