China Loans Push Poor Countries To The Brink

CHINA – A dozen poor countries are facing economic instability and even collapse under the weight of hundreds of billions of dollars in foreign loans, much of which the Associated Press reports are from China which has been described as the world’s biggest and most unforgiving government lender.

An AP analysis of a dozen countries most indebted to China include Pakistan, Kenya, Zambia and Mongolia and shows most were devoting more than a third of government revenue to paying off foreign debt.

Experts predict that unless China begins to soften its stance on its loans to poor countries, there could be a wave of more defaults and political upheavals.