A study found that China's practice of securing loans to low-income nations with cash deposits is limiting their financial management abilities. The deposits in Chinese bank accounts are nearly half of China's lending to low and middle-income countries, totaling $418 billion. The IMF and World Bank have expressed concerns about the impact of collateralised lending on developing countries' fiscal space and debt restructuring processes.

Original article source: https://www.dailymail.co.uk/wires/reuters/article-14847933/Chinas-collateral-demands-curbing-emerging-countries-ability-manage-finances-study-shows.html
Source Id: 2025-06-759433641