China has now started giving short-term loans to countries stuck in debt crisis. He has given such loans of billions of dollars. Its move is being seen as a challenge to the International Monetary Fund.
Under the leadership of America, the two institutions that ensured the financial supremacy of the West over the whole world have been the World Bank and the IMF. The World Bank gives loans related to development projects to poor and developing countries. The IMF has been providing loans to handle the internal financial and economic situation. China first challenged the World Bank. In 2013, it started the Belt and Road Initiative (BRI). Under him, he has so far given loans of $ 900 billion to various countries. Now news has come that China has also started giving emergency and short-term loans to countries in debt crisis in recent years. He has given such loans of billions of dollars. Its move is being seen as a challenge to the International Monetary Fund. Western media reports said that no one had anticipated such China debt before. China has introduced emergency loans from 2017.
Under this, many countries including Sri Lanka, Pakistan and Argentina have benefited. Information about the amount given to these countries separately is not available. Some time ago, World Bank researchers said that China maintains complete secrecy in lending matters. So the information about what he started in 2017 has now come to the fore through media reports. With this initiative, China has given a message to all the countries that they now have a source for such loans other than the IMF. According to experts, Chinese debt troubled countries find it attractive because China does not impose any conditions. It releases loans without any economic discipline or demands for restructuring the debt of other countries. So the debtor countries do not have to go through the pain of economic recovery like the terms of the IMF. But the indebted countries are forced to support China directly or indirectly. When there is a fierce competition from the West, such support is of great benefit to China.
