China is the biggest country in Debt Recovery | China is the largest country in debt recovery: 150 countries in BRI’s debt trap; 94 lakh crore arrears on poor countries

China has become the largest debt charge country in the world. According to the Australian think tank Lovi Institute, in 2025, China has a record of Rs 3 lakh crore from developing countries. Will recover 1.9 lakh crore and 75 will give 75 most poor countries.

China’s total Rs 94 lakh crore on developing countries. Are outstanding. These loans were given a decade ago under Belt and Road Initiative (BRI). Due to Chinese pressure, there is a threat to health and education budget in these countries.

46 poor countries spent 20% of their tax in 2023 on repaying debt. Developing countries are struggling with loan repayment and interest payments to China.

Come, let us know how the vicious cycle of China’s debt is overshadowing the countries…

42 countries are buried 10% more than their GDP.

China’s aggressive debt strategy began with BRI. In 2013, President Xi Jinping brought it. 150 countries are associated with this project. These countries are 40% of the global GDP. The burden of Chinese debt on 42 countries is more than 10% of their GDP.

In 2017, China became the world’s largest lender, leaving behind the World Bank and IMF. 80% of government debt went to developing countries. 55% loan in re -payment phase. There will be 75% by 2030.

In the top-10, two countries failed to repay debt, 8 is also in trouble

By 2022, 60% Chinese debt went to countries with financial crisis. In 2010, this figure was 5%. Interest ranges from 4.2% to 6%. Whereas, the rate of Organization for Economic Cooperation and Development is 1.1%. High interest has difficulties in repaying loans to many countries.

Loan is also hidden from World Bank

Poor and weak countries are at high risk or already stranded. China’s largest lender of 53 countries. 33 lakh crore loan also hidden from World Bank.

Pakistan-

In 2024, China got 17 thousand crores. Increased maturity of debt. This loan is in the process of reorganization.

Angola- It was agreed to reduce monthly payment with China in March 2024.

Sri Lanka- Default in 2022. Due to this, China had to give his Hambantota Port on 99 -year lease.

Zambia- Default has been done in 2020. The negotiation of debt reorganization continues. China is the main lender of this country.

Laos- This country is under financial stress. His debt has crossed 100% of GDP. The large part of this is from China.

Loans to small countries instead of help, properties also mortgaged

1. Help does not help loan: Gives loan at market rate, no help is help. As of 2017, only 12% of Chinese debt was the development fund. There are also low grace periods and quick payment conditions with high interest.

2. Mortgage Morters: Natural resources or assets mortgage in exchange for debt. Did this in countries like Venezuela, Angola. Countries keep paying sugar debt from resources instead of development.

3. Undisclosed debt: Loans give government companies, special purpose vehicles and joint ventures. Guarantee is government. The countries did not report the Chinese liability equal to 5.8% of their GDP.

4. Non-propagation: 35% of BRI projects are struggling with serious problems like corruption, exploitation. China only sees its advantage. There is socio-political instability locally.

5. Strategic hold: Priority of those countries, which are rich in natural resources, are strategically important or where democracy is weak. This expands the geographical effect area.