IMF's Lagarde warns China on 'Belt and Road' debt

13 Abril, 2018, 06:31 | Author: Gregg Anderson
  • Zhu Min former deputy managing director of the IMF warned of U.S. stock market risks at the Boao Forum for Asia

China's Belt and Road initiative should fill true infrastructure gaps and avoid financing deals that may lead to debt problems in partner countries, International Monetary Fund Managing Director Christine Lagarde said on Thursday.

China has been ramping up its Belt and Road initiative, which would build a modern-day Silk Road stretching from Asia to Africa and Europe.

"With any large-scale spending there is sometimes the temptation to take advantage of the project selection and bidding process. Experiences from across the globe show that there is always a risk of potentially failed projects and the misuse of funds".

Xi has touted the plan as a way to foster development and economic integration.

Lagarde's remarks follow recent concerns among the United States and its allies in Asia and Europe that China's new Silk Road project is aimed at expanding Beijing's economic, political and military influence overseas while making some countries heavily indebted to China.

But numerous colossal projects are being built by state-owned Chinese companies and financed by loans from China, leaving states billions of dollars in debt to Beijing.

More news: Persiste incendio en Bosque, zona metropolitana de Guadalajara
More news: Netflix le declara la guerra al Festival de Cannes — Tercer round
More news: Hasta Arturo Vidal reacciona tras el penal del Real Madrid

China's plan for a modern Silk Road of railways, ports and other facilities linking Asia with Europe hit a $14 billion pothole in Pakistan when plans for the Diamer-Bhasha Dam were thrown into turmoil in November past year, when the chairman of Pakistan's water authority said Beijing wanted an ownership stake in the hydropower project.

In countries where public debt is already high, careful management of financing terms is critical, in order to protect China and partner governments from entering into pacts that will cause financial difficulties in the future, Lagarde warned. In Sri Lanka's case, the island nation handed over a long-term lease on the strategically located and bustling Hambantota Port to pay down debt.

US Treasury Secretary Steven Mnuchin has expressed Washington's concern recently about Chinese Belt and Road development lending. "We're concerned in certain areas where countries can't necessarily afford the loans".

She urged China to improve the transparency of its decision making on the project, such as by creating a "one-stop shop" that provides information to stakeholders. "[The Belt and Road initiative] is neither the Marshall Plan after World War II nor an intrigue of China".

Xi struck back at criticism of his key initiative on Wednesday at the Boao Forum for Asia, a Davos-like meeting of global leaders held on the southern island of Hainan.



Scalise: I 'Wouldn't Run Against' McCarthy for Speaker
McCarthy is seen as an affable presence at the House, a hard worker who's accessible to listen to members' considerations. Scalise is viewed as more conservative than McCarthy, important in a House GOP conference that's drifted to the right.

FBI Raids Michael Cohen's Office
She claims Mr Trump did not sign the Hush Agreement so that he could distance himself from it, and from Ms Daniels. The special counsel's office and Justice Department declined to comment on the searches Monday.

Padres, Rockies Brawl at Coors Field
That's when Perdomo threw his second pitch of the inning: his glove, which sailed past Arenado as he leapt in the air. I didn't think it was possible (that they were going to hit him). "I thought I had to do something, too".

Knicks will reach out to Jay Wright about head coaching job
Yet independent of the Knicks' struggles, the reality is that Hornacek was not hired by their general manager, Scott Perry. He spent six-plus seasons with the team during his 17-year career and is held in high regards by most Knicks fans.

Hamas fighter killed in Israel strike: Gaza ministry
Palestinian rights advocates argued the claims of Hamas affiliation were meant to retroactively justify the killing. The army said the bomb was planted under cover of mass protests along the Gaza-Israel border since March 30.

God Of War On PS4 Pro Can't Maintain 30 FPS
Thus, at the very start of the new " God of War ", we come across an older, heavily bearded Kratos standing before a large tree. While not ideal and sometimes prone to making mistakes, Atreus usually knows what to do in certain situations.

Estreno de "Luis Miguel la Serie" cambia de horario por debate presidencial
Todo esto, en el marco de su crecimiento como cantante, de sus amores, excesos, conquistas, y su mayor pasión: la música. El programa presenta la única historia autorizada de la vida del artista multi-platino y estrella global Luis Miguel .

Deposition of Bacteria and Bacterial Spores by Bathroom Hot Air Hand Dryers
In fact, the University of Connecticut's School of Medicine even started to stock paper towels in its facilities. Researchers analysed hand dryers from male and female bathrooms in three separate areas.

Borracho asesina a cantante embarazada en escenario por no bailar para él
El principal sospechoso Tarique Ahmed Jatoi ha sido puesto en custodia, pero el incidente originó protestas en Pakistán . Por su parte, el esposo de Samoon presentó un informe de doble homicidio por su hijo no nacido .

PM, Leader of Opposition in NA discuss caretaker set-up
The prime responsibility of the caretaker government is to ensure that the elections are held in a clear manner. However, the last name is said to be favorite, according to the sources.