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Loans pushing poorest countries to brink of collapse
A group of twelve impoverished nations is grappling with economic instability and potential collapse due to the burden of massive foreign loans, predominantly from China, the world’s largest and least forgiving government lender.
An analysis conducted by the Associated Press focused on twelve countries with the highest debt to China, including Pakistan, Kenya, Zambia, Laos, and Mongolia.
The findings reveal that servicing these debts is progressively consuming a larger share of tax revenue that should be allocated to essential services such as education, electricity, food, and fuel.
Moreover, it is depleting foreign currency reserves that these countries rely on to pay interest, leaving them with only a few months before running out of funds, as reported by the Associated Press.
"China’s loans pushing world’s poorest countries to brink of collapse"
READ MORE: https://apnews.com/article/china-debt-banking-loans-financial-developing-countries-collapse-8df6f9fac3e1e758d0e6d8d5dfbd3ed6
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