A study found that Chinese state-backed lenders released bailout funds to 22 countries, including Argentina, Pakistan, Sri Lanka and Ukraine. Almost 80% of the emergency rescue lending was issued after 2016, reaching more than $40bn in 2021.
The rise in emergency financing since 2016 correlates with a drop in Chinese lending for infrastructure projects that are part of Beijing's belt and road initiative. Commitments from China's two main institutional lenders, China Development Bank and the Export-Import Bank of China (China Exim), fell from a peak of $87bn in 2016 to $3.7bn in 2021, according to data analysed by Boston University. The failure of several infrastructure projects and the debt problems of many recipient countries hurt by the rising cost of servicing their loans has forced a recalibration of China's overseas development programme.
The war in Ukraine, Covid-19 pandemic, supply chain problems and rising interest rates have contributed to a global economic crisis that has created difficulties for lenders of all kinds.
This story is from the March 29, 2023 edition of The Guardian.
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This story is from the March 29, 2023 edition of The Guardian.
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