Overview

• Developing countries are set to repay $35 billion in debt to China this year, with $22 billion owed by the world's 75 poorest nations.
• China's role has shifted from a major lender to the world's largest official debt collector as repayments from its Belt and Road Initiative loans come due.
• In 54 developing nations, debt payments to China in 2025 will surpass combined repayments owed to Western Paris Club lenders.
• The Lowy Institute report warns that these repayments could jeopardize health and education spending in vulnerable countries.
• Declining Western aid and reduced multilateral support exacerbate risks of economic instability as China intensifies debt collection efforts.