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

rafale-jets rafale-jets
Featured27 mins ago

Indian Rafale Jets, For The 1st Time, Conduct Sorties Over Ladakh

French-origin Dassault Rafale jets, for the first time known, have commenced conducting ‘familiarization’ sorties over Ladakh as tensions between two...

qatar-saudi qatar-saudi
Featured9 hours ago

Qatar Affirms Its Position On Israel-Palestine Issue; Says Ending Israeli Occupation A Must

Qatar on Sunday said it stands by Palestinians and that the long-standing conflict with Israel should be resolved by addressing...

F-15EX-india F-15EX-india
Featured17 hours ago

No More Rafales! Why Indian Air Force Could Reject Second Batch Of Dassault Rafale Jets?

As the Indian Air Force (IAF) looks to further bolster its aerial fleet after the successful acquisition of French Dassault...

US-CHINA-INDIA-JAPAN US-CHINA-INDIA-JAPAN
Americas22 hours ago

US To Re-Impose Biting UN Sanctions On Iran Despite Global Objections

The US will reimpose biting UN sanctions on Iran that were removed as part of a 2015 nuclear pact struck...

F-35-INDIA F-35-INDIA
Featured23 hours ago

Not J-20s, China Could Field Another ‘Stealth Jet’ To Counter US’ F-35s, Indian Rafales

As tensions boil over Taiwan, the US and China have ramped up efforts in the field of defense innovation as...

army-soldiers army-soldiers
Featured24 hours ago

Amid Afghan Peace Talks, Two Pakistan Army Soldiers Ambushed Near Afghanistan Border

 Two Pakistan Army soldiers were killed on Saturday in a clash with suspected militants near the country’s northwestern border with...

Chinese-Military-Base Chinese-Military-Base
Asia Pacific1 day ago

Is China Threatening To Shoot-Down ‘Civilian Airlines’ Operating Over The South China Sea?

China has warned the US after it flew its ‘spy planes’ over the South China Sea several times electronically disguising...

Demonetization-Narendra-Modi Demonetization-Narendra-Modi
Featured1 day ago

Narendra Modi Second Indian Prime Minister To Win Ig Nobel Prize 2020

Indian Prime Minister Narendra Modi has been awarded the Ig Nobel Prize for 2020 for ‘Medical Education’. The award is...

CPEC-Project CPEC-Project
Featured2 days ago

India vs Pakistan: Why Are India’s COVID-19 Cases Inflating While Pakistan Has Almost Overcome The Pandemic?

While India has literally been brought to its knees by the COVID-19 pandemic with almost 100,000 cases reported daily, the...

Sheikh-Mujibur-Rahman-Movie Sheikh-Mujibur-Rahman-Movie
Featured2 days ago

India, Bangladesh, Agree To Enhance Border Patrol, Curb Border Killings

India and Bangladesh on Saturday agreed to launch joint border patrols to curb killings and crimes. in the border region....

Advertisement