China’s Belt and Road Initiative has raised important questions about the risk of debt problems in less-developed countries. The risks are serious for the small and fragile economies of the Pacific. However, the analysis finds a different picture. The evidence to date suggests China has not been engaged in deliberate ‘debt trap’ diplomacy in the PICs. The Belt and Road projects have brought effective investment to the relevant countries rather than the so-called debt trap, boosted local economy and improved people’s livelihood. By Col. (Ret’d.) Siamelie Latu.
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Results for Chinese loans
Tuesday 19 November 2019
Wednesday 5 December 2018
Tonga’s repayment of its $119 million pa'anga loan from the EXIM Bank of China for the reconstruction of the Nuku‘alofa Central Business District has been deferred for another five years.
Monday 22 October 2018
The Tonga Government will start paying $TOP10.8 million a year during the next ten years, (principal only) of its $TOP119m loan from the Exim Bank of China that was used to fund reconstruction projects after the 2006 riots in Nuku'alofa. The start of the principal repayments has already contributed to a $22.8m decline in Tonga’s foreign reserves in September. Now Tonga is confronting the real cost of the riots.
Thursday 8 February 2018
The Government of Tonga is dismissing accusations by a prominent Australian newspaper that China’s foreign aid is hurting Tonga’s economy. The news article claimed that many Tongans believe that they have been "sold out by the Tongan Government”.