China's Belt and Road loans under scrutiny as developing nations struggle with debt repayment
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China has loaned over $1.3 trillion to fund infrastructure projects in developing countries through its Belt and Road Initiative (BRI).
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It's estimated that 80% of China's overseas lending is to financially distressed countries, with over $1.1 trillion in outstanding debt.
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Over half of BRI loans have entered principal repayment periods, with China doubling interest rates for late payments.
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The U.S. spends $60 billion annually on similar development financing to compete with China's BRI influence.
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The EU has launched its Global Gateway program, with nearly €70 billion in deals to provide developing countries infrastructure financing alternatives.