Belarus-China: Avoiding the "Debt Trap"

Kiryl Rudy

A chapter in Global Trade in the Emerging Business Environment from IntechOpen

Abstract: Since 2005 Belarus with its developing Post-Soviet economy has been attracting loans from China. By 2019 China became among top three international lenders for Belarus. On one hand Chinese loans financed infrastructure and industrial projects and supported economic growth in Belarus, and on the other hand they increased import from China and foreign debt of Belarus. In order to overcome the phobia of Chinese "debt trap" the Government of Belarus recently decreased the number and amount of Chinese loans tied to infrastructure projects, improved credit terms, increased FDI from China, and created joint industrial park 'Great Stone'. As a result, the case of Belarus and China outlines how to avoid "debt trap" in 'Belt and Road' initiative by focusing on FDI from China.

Keywords: government debt; foreign direct investments; "debt trap"; 'Belt and Road' initiative (search for similar items in EconPapers)
JEL-codes: F10 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ito:pchaps:230541

DOI: 10.5772/intechopen.96858

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