About half of China's loans to developing countries are 'hidden,' study finds.
Between 2000 and 2017, other countries' debt owed to China soared ten-fold, from less than $500 billion to more than $5 trillion — or from 1% of global economic output to more than 5%, according to the study from"This has transformed China into the largest official creditor, easily surpassing the IMF or the World Bank," the report's researchers said.
For 50 developing countries which have borrowed from China, that debt has increased on average from less than 1% of their GDP in 2015, to more than 15% in 2017, according to estimates by the study's researchers. It further added: "Lower income developing economies mostly receive direct loans from China's state owned banks, often at market rates and backed by collateral such as oil."
Estimates suggest that China now accounts for a quarter of total bank lending to emerging markets, according to the study.
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