It's Payback Time For a Lot of Those Chinese Loans cover art

It's Payback Time For a Lot of Those Chinese Loans

It's Payback Time For a Lot of Those Chinese Loans

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Borrowers in Africa and other developing regions are expected to repay $35 billion of Chinese loans this year, with two-thirds of the amount coming from the world's poorest countries. Many of these debts were taken out in the mid-2010s and are now exiting their grace periods, putting enormous pressure on government budgets that were already under strain.

But this isn't a problem just for borrowing countries; Chinese creditors are also finding themselves in a difficult bind. If they push too hard to collect on these debts, it could force the most vulnerable countries into default. At the same time, though, they have an obligation to their stakeholders, including Chinese taxpayers, to ensure these obligations are fulfilled.

Riley Duke, a research fellow at the Lowy Institute, highlighted the difficult dilemma for both creditor and borrower in a new report on Chinese debt collection. Riley joins Eric & Cobus from Sydney to discuss how both sides of the transaction are responding to this growing challenge.

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