Debt trap on China’s new “Silk Road”

China’s “Belt and Road Initiative” (BRI) is reportedly burying some countries under massive debt. Of the 68 countries involved, eight are vulnerable to debt distress, owing almost $18 billion to Beijing


DEBT RISK BY COUNTRY
Figures show debt to China ($ millions)

High
Significant
Low

Montenegro 200
Djibouti 1,200
Tajikistan 1,197
Kyrgyzstan 1,483
Mongolia 3,046
CHINA
Maldives 240
Pakistan 6,329
Laos 4,186


GOVERNMENT GROSS DEBT (% of GDP)
IMF forecast for 2018

Maldives	109.0
Mongolia	89.0
Djibouti	87.5
Montenegro	80.9
Laos		70.3
Pakistan	67.6
Kyrgyzstan	65.5
Tajikistan	56.8

0% 20% 40% 60% 80% 100% 120%


BRI – “New Silk Road” announced by Xi in 2013 – envisions construction of railways, roads and
ports across globe, with Beijing providing billions of dollars in loans to many countries


President Xi Jinping denies Beijing is engaging in “debt diplomacy”


Source: Center for Global Development 
Picture: Getty Images 
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