Overview

• Developing nations must make $35 billion in debt repayments to China in 2025, including $22 billion from the 75 poorest countries.
• Repayments now exceed new loan disbursements, marking China’s shift from net lender to net collector of developing-country debt.
• In 54 developing countries, payments to China will surpass combined obligations to the Paris Club of Western bilateral lenders.
• High debt servicing costs risk diverting funds from health, education and climate initiatives in vulnerable economies.
• Fresh Chinese loans to Honduras and the Solomon Islands followed those countries’ diplomatic switch from Taiwan, raising concerns over debt-trap diplomacy.