IMF warns China about saddling other nations with a debt.
Beijing: IMF warned China about saddling other nations with a "problematic increase in debt" through its ambitious global trade infrastructure project.
IMF chief Christine Lagarde made the comments at a Beijing forum on Chinese President Xi Jinping's signature Belt and Road initiative, a USD 1 trillion road, rail and construction project spanning dozens of countries -- from Asia to Africa and Europe.
But many of the colossal projects are being built by state-owned Chinese companies and financed by loans from China, leaving states billions of dollars in debt to Beijing. "These ventures can also lead to a problematic increase in debt, potentially limiting other spending as debt service rises, and creating balance of payment challenges," Lagarde told the crowd of Chinese and foreign officials.
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|Publication:||Daily the Pak Banker (Lahore, Pakistan)|
|Date:||Apr 15, 2018|
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