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National governments of developing countries were required to guarantee repayment of loans made to their local and provincial governments. In the early years, 65 Now, 55% of China’s official sector loans to developing countries have entered their repayment periods, according to the analysis of more than two decades of BRICS member China is now the biggest debt collector in the world as developing countries owe the Communist nation $1.1 trillion. China provided loans to several Hace 3 días In 2025, debt repayments owed to China by developing countries will amount to $35bn. Of that, For context, Germany used 8.4 percent of its budget to repay debt in 2025. Hace 4 días SYDNEY - The world’s poorest nations face a “tidal wave of debt” as repayments to China hit record highs in 2025, an Australian think-tank warned on May 27 in a new report. Some Western media outlets keep spreading rumors that countries involved in the Belt and Road Initiative that need to repay loans to China are facing a debt trap, thus Hace 4 días The bulk of this debt service is owed by 75 of the world’s poorest and most vulnerable countries, the institute said, adding that developing countries are “grappling with a Hace 4 días According to the report by the Lowy Institute, developing countries owe a record $35 billion in debt repayments to China in 2025, with debt servicing costs on projects financed

BRICS & Beyond: Developing Countries Face $1.1 Trillion Debt Repayment to China

Developing countries, particularly those within the BRICS nations and those participating in the Belt and Road Initiative, are facing a growing debt crisis, with repayments to China reaching critical levels. Analysis of over two decades shows that BRICS member China is now the biggest debt collector globally, with developing nations owing the Communist nation a staggering $1.1 trillion.

The Scale of the Debt Crisis

The Lowy Institute report highlights the immense pressure on the world\'s poorest nations, warning of a “tidal wave of debt.” In 2025 alone, developing countries owe China a record $35 billion in debt repayments. This significant debt servicing burden stems from projects financed through Chinese loans, placing immense strain on national budgets.

For context, consider Germany’s debt repayment effort, which consumed 8.4 percent of its budget in 2025. The burden is far heavier on developing nations with significantly smaller economies and resources. The bulk of this debt service falls on 75 of the world’s poorest and most vulnerable countries, already “grappling with a” challenging economic landscape.

Guarantees and Repayment Periods

A key factor contributing to this crisis is the structure of the loans. National governments of developing countries were required to guarantee repayment of loans made to their local and provincial governments. This means that even if individual projects fail, the national government is on the hook for the debt.

Furthermore, a significant portion of China’s loans are now entering their repayment periods. In the early years of lending, only 65% of China’s official sector loans to developing countries have entered their repayment periods, according to the analysis of more than two decades of lending, now it is 55%.

Addressing the "Debt Trap" Narrative

Some Western media outlets have raised concerns about a "debt trap," suggesting that China deliberately provides loans that developing countries cannot repay. However, the situation is complex. While the debt burden is undeniable, the investments funded by these loans can also contribute to economic growth and development. The key lies in sustainable debt management and responsible lending practices.

China provided loans to several developing countries, and now these countries face significant challenges in meeting their repayment obligations.

Conclusion

The $1.1 trillion debt owed to China represents a significant challenge for developing countries. Navigating this crisis requires a multi-faceted approach, including debt restructuring, improved debt management practices, and sustainable economic development initiatives. The world is watching to see how these nations, particularly those within the BRICS framework, will manage this critical financial hurdle.

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