China Shifts Focus from Belt and Road to Issuing Yuan Loans for Distressed Economies
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China is issuing more yuan-denominated emergency loans to distressed economies to ensure its banks get repaid for old Belt and Road projects. This marks a pivot from infrastructure lending.
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China's rescue lending has reached about $250 billion across 22 countries, often for debt-laden Belt and Road projects.
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Emergency loans proliferate now to ensure debtor nations pay back at least interest on old projects like ports and railways.
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Yuan emergency loans align with Beijing’s vision to promote overseas use of the currency.
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Belt and Road investment has declined since 2018, pivoting to "small yet smart" projects amid repayment struggles.