China Poor Country Debt

FILE - A train engine rolls past a model of a high-speed train displayed at the construction site of a Jakarta-Bandung high-speed railway station in Tegalluar, West Java, Indonesia, Thursday, Oct. 13, 2022. The 142-kilometer (88-mile) railway is being constructed by PT Kereta Cepat Indonesia-China, a joint venture between an Indonesian consortium of four state-owned companies and China Railway International Co. Ltd.

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China's loans pushing world’s poorest countries to brink of collapse

China's loans pushing world’s poorest countries to brink of collapse

A dozen poor countries are facing economic instability and even collapse under the weight of hundreds of billions of dollars in foreign loans, much of them from the world’s biggest and most unforgiving government lender, China. An Associated Press analysis of a dozen countries most indebted to China — including Pakistan, Kenya, Zambia and Mongolia — found payments on the debt are consuming an ever-greater amount of the tax revenue needed to provide basic services. And it’s draining foreign currency reserves these countries use to pay interest on those loans, leaving some with just months before that money is gone.