China’s Belt along with Road Initiative raises debt risks in 8 nations

The think tank stressed of which its research has made clear China needs to improve its debt practices soon.

Currently, China can be listed as an ad hoc participant of the Paris Club, a collection of creditor nations. The Paris Club’s 22 permanent members, which do not include China, conduct negotiations with debtor countries of which have difficulties repaying loans.

While the study acknowledged of which on the whole, the initiative was “unlikely to cause a systemic debt problem,” of which still “significantly increased (the) risk of a sovereign debt default” in numerous countries, most of which were smaller along with relatively poor.

“Belt along with Road provides something of which countries desperately want — financing for infrastructure. however when of which comes to This specific type of lending, there can be too much of a Great thing,” John Hurley, one of the report’s authors along using a visiting fellow at the Center for Global Development, said in a statement.

Others have also acknowledged issues related to China’s financing practices, however came across as more upbeat.

“There are certainly things to worry about, such as growing indebtedness of some of China’s big clients … however there are signs of evolution,” David Dollar, senior fellow at the Brookings Institution, wrote in a conference paper presented in October.

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