US Edition
Developing nations rack up $3.9 bln in net debt payments to China a year, study finds
Developing nations repay $3.9 billion more yearly to China than they borrow, risking economic strain and reduced climate investment, Boston University researchers said.
- On Friday, Boston University's Global Development Policy Center reported that net debt transfers turned negative in 2022 and 2023, with developing nations repaying $3.9 billion more annually to China than they borrowed.
- Between 2008 and 2024, China's policy banks committed over $472 billion, supporting more than 900 projects worth $316 billion across the Global South.
- Authors said countries need a stepwise increase in financing to invest in low‑carbon, socially inclusive and resilient economic growth, and the study added this would help spur demand for Chinese exports.
- Financial actors are shifting to yuan financing, as Kenya's Finance Minister John Mbadi said three Chinese railway construction loans were converted from dollars to yuan to save interest costs, and Afreximbank launched its yuan‑denominated panda bond in April.
- The paper proposed five steps including refinancing loans in distress, issuing RMB‑denominated bonds and expanding green lending, while China said in June it was progressing on tariff removals for African states.
7 Articles
7 Articles
Developing nations rack up $3.9 bln in net debt payments to China a year, study finds
Developing nations are now paying more to service debt owed to China than they receive in new loans, a shift that risks deepening economic strain and slowing climate investment, a report released on Friday by Boston University's Global Development Policy Center found.
The Straits Times
Developing nations rack up $3.9 billion in net debt payments to China a year, study finds
JOHANNESBURG - Developing nations are now paying more to service debt owed to China than they receive in new loans, a shift that risks deepening economic strain and slowing climate investment, a report released on Friday by Boston University's Global Development Policy Center found. Read more at straitstimes.com.
Debt Dynamics: The Shifting Tides of Chinese Development Finance
A report by Boston University's Global Development Policy Center highlights the current financial dynamics where developing nations pay more in servicing debt to China than receiving new loans. This shift poses significant economic challenges and threatens climate investment in these regions.
China now receiving much more in debt repayments than it lends to poor nations - Tibetan Review
(TibetanReview.net, Oct11’25) – Developing nations are now repaying much more to China than they receive in new loans, showing a growing strain on economies already battling debt distress and underinvestment in climate action, reported africa.businessinsider.com Oct 11, citing a new report by Boston University’s Global Development Policy Centre. The report, Reviving Chinese Development Finance in […]
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