USD 77.42
EUR 91.14
RUB 1.05

China grants secret loans, including to Kyrgyzstan

China has sharply increased lending to developing countries and countries with economies in transition in the past ten years. Half of these loans are classified. The Information Analytical Center reports with reference to Deutsche Welle.

The list of 50 the largest recipients of direct Chinese loans includes Belarus, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.

Kyrgyzstan owes the PRC 30 percent of its GDP. Belarus has debt to Beijing at 13 percent of GDP. Tajikistan owes China about 15 percent of its GDP. Turkmenistan’s debt is presumably slightly higher than Belarus’s, and Uzbekistan’s exceeds 5 percent. This share of debts is less than 5 percent in Armenia and Kazakhstan.

Such data were presented to DW by the Professor of the Institute for the World Economy (IfW) in Kiel Christoph Trebesch. According to him, Kyrgyzstan has become very dependent on economic development in the PRC. If a crisis breaks out in China and it is unable or unwilling to extend the loans issued earlier, the government in Bishkek will be in a very difficult situation.