Connect with us

Asia Pacific

Asian Development Bank Warns 8 Nations Against Chinese Debt Trap via BRI Project

Published

on

Which countries are most vulnerable to Chinese Debt Trap via BRI Project according to the ADB (Asian Development Bank)? The head of the Asian Development Bank cautioned nations against unsustainable funding to finance infrastructure projects via the BRI Project, which could get them badly trapped under the Chinese debt.

China Stops CPEC funding over Corruption charges, Pakistan ‘Stunned’

The President of Asian Development Bank – Takehiko Nakao said that China’s Belt and Road Initiative (BRI) is an important initiative to connect different regions which widens integration and collaboration across Asia, but warned small countries against unreasonable financing for infrastructure projects.

“If countries borrow too much for infrastructure projects without seriously looking at its viability, it will bring more difficulity in repayment. – Takehiko Nakao

Nakao echoed the anxieties of International Monetary Fund Managing Director Christine Lagarde over unreliable fiscal policies. Lagarde, in a conference in China, stated that the BRI initiative could put a massive burden on countries already overwhelmed with public debt.

“In nations where public debt is already large, rigorous management of funding terms is vital,” Lagarde said. “This will protect both China and the collaborating countries from signing agreements that will spell monetary hassles in the future.” China’s Belt and Road Initiative strives to build $8 trillion worth of infrastructure connecting China with trade routes between Asia and Europe.

According to the Center for Global Development, a Washington-based think tank mentioned in a report that 23 nations are at risk of debt distress due to the financing related to the Chinese BRI investment projects. Eight nations are of substantially at “high risk” which includes Pakistan, Maldives, Mongolia, Tajikistan, Kyrgyzstan and Laos.

“There are some small and underdeveloped nations, which face a significantly heightened danger of a sovereign debt default if BRI projects are completed in an expeditious manner and bankrolled with sovereign loans or guarantees,” the report said.

The Asian Development Bank predicts Asia’s infrastructure requirements could reach about $23 trillion by 2030, or $1.5 trillion yearly.

Must Read at EurAsian Times: High Risk for Companies Investing in One Belt One Road Projects (OBOR)?

Advertisement
Advertisement

Facebook

FEATURED

usa-taiwan usa-taiwan
Asia Pacific3 hours ago

Amid China Threat, Taiwan’s First Homegrown Submarine To Be Equipped With US’ Torpedoes, Harpoon Missiles

Amid China’s muscle-flexing, Taiwan has started building its first indigenous submarine. The Island nation will be receiving imported components for...

ROBOT-SOLDIERS ROBOT-SOLDIERS
EurAsian Region3 hours ago

Russian Army Receive 1st Batch Of Deadly ‘Terminators’ That Can Spread Terror On The Battleground

The Russian Ministry of Defense announced that its military had received the first batch of Terminator tank support fighting vehicle...

F-35-INDIA F-35-INDIA
Featured5 hours ago

Did Russian Missiles ‘Hit’ F-35 ‘Stealth’ Fighter Jet Operated By The Israeli Air Force Over Syria?

The world has its eyes on the new American F-35 jet that has already cemented its place in the elite...

Chandrayaan-2 Chandrayaan-2
Asia Pacific9 hours ago

India’s Venus Orbiter ‘Shukrayaan’ May Get A Piggyback Ride On Heavy-Duty Rocket, GSLV-Mk III

In September, NASA administrator Jim Bridenstine had said it’s time to prioritize Venus, one of our closest planetary neighbors. His...

INDIA-PAKISTAN INDIA-PAKISTAN
Featured10 hours ago

Pakistan Hits Out At India For War-Mongering Even During Covid-19 Pandemic

Pakistani foreign minister lambasted arch-rival India and – said that some countries, including India, defied international calls for peace and...

INDIA-CHINA INDIA-CHINA
Asia Pacific11 hours ago

Chinese PLA Deploys ‘Assault Boats’ In Pangong Lake After Indian Army Stations MARCOS Commandos?

As Indian and Chinese diplomats and top military commanders are trying ways to disengage in the Ladakh region, there are...

rafale-jets rafale-jets
Asia Pacific14 hours ago

Indian Rafales ‘Far Superior’ To Pakistan’s JF-17 Thunder — Chinese Military Experts Make Rare Admission

In what seems to be a rare admission, Chinese experts have said that the French-built Rafale fighter jets, procured by...

china-moon-mission china-moon-mission
Featured14 hours ago

ISRO’s Chandrayaan Looks To Catch-Up In Space Race As China Surges Ahead With Chang’e-5 Moon Mission

China’s Chang’e-5 probe has successfully landed on the moon, in a landmark mission to bring lunar surface samples back to...

US-CHNA-WORLD-WAR US-CHNA-WORLD-WAR
Americas23 hours ago

Why Is The US Constructing A New Military Base Right Next To Its Biggest Airbase Near China?

With its eyes on China, the US Department of Defense (DoD) will build an alternative military base on Tinian island,...

Americas23 hours ago

The US ‘Apple’ Turns Sour As China’s Xiaomi Heads For Global Domination In Smartphone Markets

Xiaomi replaced Apple for the first time to reach the third spot globally, after Samsung and Huawei, in the list...

Advertisement
Advertisement