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China as an international creditor

Author

Listed:
  • Kaaresvirta, Juuso
  • Laakkonen, Helinä
Abstract
China became the world's largest lender to emerging and developing economies over the past decade. At the same time, concerns on the debt sustainability of many of these countries have grown. Some countries have found themselves struggling to repay their loans and China has had to renegotiate debt restructurings bilaterally. As covid-19 pandemic hit many of the borrowers hard in 2020, China committed with all other G20 countries to the Debt Service Suspension Initiative (DSSI) to temporarily suspend official bilateral debt payment of 73 beneficiary countries. While China's overseas lending remain opaque, there is little evidence that China intentionally practices "debt-trap diplomacy."

Suggested Citation

  • Kaaresvirta, Juuso & Laakkonen, Helinä, 2021. "China as an international creditor," BOFIT Policy Briefs 5/2021, Bank of Finland Institute for Emerging Economies (BOFIT).
    • Handle: RePEc:zbw:bofitb:52021
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    File URL: https://www.econstor.eu/bitstream/10419/251706/1/bpb2105.pdf
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    References listed on IDEAS

    as
    1. Horn, Sebastian & Reinhart, Carmen M. & Trebesch, Christoph, 2021. "China's overseas lending," Journal of International Economics, Elsevier, vol. 133(C).
    2. Essl,Sebastian Michael & Kilic Celik,Sinem & Kirby,Patrick Alexander & Proite,Andre, 2019. "Debt in Low-Income Countries : Evolution, Implications, and Remedies," Policy Research Working Paper Series 8794, The World Bank.
    3. Cerutti, Eugenio & Casanova, Catherine & Pradhan, Swapan-Kumar, 2023. "Banking across borders: Are Chinese banks different?," Journal of Banking & Finance, Elsevier, vol. 154(C).
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Britta Kuhn, 2021. "Chinas Belt and Road Initiative wandelt sich [China’s Belt and Road Initiative Is Changing]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 101(11), pages 901-905, November.

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    More about this item

    Keywords

    China; loans; loan restructuring; low-income and emerging economies;
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