Behind China's Silk Road vision: cheap funds, heavy debt, growing risk


  • World
  • Monday, 15 May 2017

Chinese President Xi Jinping attends a news conference at the end of the Belt and Road Forum in Beijing, China May 15, 2017. REUTERS/Jason Lee

BEIJING (Reuters) - Behind China's trillion-dollar effort to build a modern Silk Road is a lending programme of unprecedented breadth, one that will help build ports, roads and rail links, but could also leave some banks and many countries with quite a hangover.

At the heart of that splurge are China's two policy lenders, China Development Bank (CDB) and Export-Import Bank of China (EXIM), which have between them already provided $200 billion (155.1 billion pounds) in loans throughout Asia, the Middle East and even Africa.

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