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**Developing Nations Face Record Debt Repayments, Primarily to China’s Belt and Road Initiative**

**Sydney, Australia** – Developing countries are poised to pay a record $22 billion this year, largely attributed to loans from China’s Belt and Road Initiative (BRI), placing significant strain on public spending, according to a new report by the Lowy Institute.

The report highlights that in 2025, repayments to China from developing nations will surge to $35 billion, with $22 billion due from 75 of the world’s poorest countries. This could jeopardize crucial investments in health and education.

“For the rest of this decade, China will be more debt collector than banker to the developing world,” said Riley Duke, the report’s author.

The BRI, launched in 2013, saw Beijing lend heavily to build infrastructure across Asia, Africa, and the Americas. While new lending is slowing, the consequences of past loans are becoming apparent. The rising debt burden is prompting concerns that China could leverage these debts for geopolitical influence, particularly as Western aid diminishes.

While the focus is on China, experts point out that many developing nations also owe substantial amounts to private Western lenders, often at higher interest rates. Some argue that China’s long-term lending for infrastructure is beneficial compared to the shorter-term, higher-rate loans offered by Western institutions.

China’s Foreign Ministry stated it was “not aware of the specifics” of the report but that “China’s investment and financing cooperation with developing countries abides by international conventions”.

The BRI has faced criticism from some Western observers who call it a “debt trap,” citing examples like the Hambantota port in Sri Lanka. However, China denies these accusations, and some recipient countries have defended the BRI as a vital source of funding when Western institutions were unwilling to lend.

While debates continue, the Lowy Institute’s report underscores the growing pressure on developing economies as they navigate complex debt obligations to multiple creditors, raising questions about future development and geopolitical dynamics.

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