GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

IMF Warns China on Exporting Debt Through 'Silk Road' Which Passes Through PoK

One challenge is to ensure that Belt and Road only travels where it is needed, and the second is to focus on sound fiscal policies, Lagarde said in prepared comments in a speech at a Belt and Road conference in Beijing on Thursday.

Reuters

Updated:April 12, 2018, 2:17 PM IST
facebookTwittergoogleskypewhatsapp
IMF Warns China on Exporting Debt Through 'Silk Road' Which Passes Through PoK
International Monetary Fund (IMF) Managing Director, Christine Lagarde, delivers a speech at the University of Hong Kong, in Hong Kong, China. (Image: Reuters)
Loading...
Beijing: International Monetary Fund Managing Director Christine Lagarde said on Thursday China's Belt and Road initiative is showing signs of progress but warned of potential debt risks for partner countries involved in joint projects.

One challenge is to ensure that Belt and Road only travels where it is needed, and the second is to focus on sound fiscal policies, Lagarde said in prepared comments in a speech at a Belt and Road conference in Beijing on Thursday.

"Fortunately, we know that China's leadership is aware of these potential risks - as well as the proven strategies that can help address the challenges," Lagarde said.

President Xi Jinping's Belt and Road Initiative, unveiled in 2013, aims at building a modern-day Silk Road connecting China by land and sea to Southeast Asia, Central Asia, the Middle East, Europe and Africa. China has pledged $126 billion for the ambitious plan.

In his opening speech to the annual Boao Forum on Tuesday - Asia's equivalent of Davos - Xi said Belt and Road pacts had been made over the last five years with more than 80 countries and international bodies.

Lagarde said the initiative can provide much needed infrastructure financing to partner countries, but should not be considered "a free lunch" by those nations.

Belt and Road ventures can lead to a "problematic" increase in debt, potentially restricting other spending as debt service obligations rise, which could create balance of payment challenges.

In countries where public debt is already high, careful management of financing terms is critical, in order to protect China and partner governments from entering into pacts that will cause financial difficulties in the future, Lagarde warned.
| Edited by: Ahona Sengupta
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Reliance 1,101.30 -4.34
Indiabulls Hsg 653.80 -17.10
Dewan Housing 210.55 -10.75
Yes Bank 217.90 -6.04
Bajaj Finance 2,140.50 -0.47
Company Price Change %Gain
Sudarshan Chem 385.05 2.64
Indiabulls Hsg 654.25 -17.06
Reliance 1,101.65 -4.11
Dewan Housing 211.80 -10.37
Yes Bank 217.70 -6.06
Top Gainers
Company Price Change %Gain
ITC 289.45 1.05
HUL 1,578.40 1.05
Kotak Mahindra 1,198.95 1.95
HPCL 215.90 4.15
Wipro 323.15 0.00
Company Price Change %Gain
Sun Pharma 608.40 2.52
Kotak Mahindra 1,198.50 1.74
Vedanta 211.15 1.51
Adani Ports 318.00 1.18
HUL 1,579.20 1.16
Top Losers
Company Price Change %Gain
Indiabulls Hsg 653.80 -17.10
Yes Bank 217.90 -6.04
Bajaj Finance 2,140.50 -0.47
Hero Motocorp 2,712.75 -3.38
BPCL 283.55 -0.56
Company Price Change %Gain
Yes Bank 217.70 -6.06
HDFC 1,661.30 -4.32
Reliance 1,101.65 -4.11
Hero Motocorp 2,711.00 -3.70
Infosys 682.60 -3.11

Live TV

Loading...
Loading...