US Tops Global External Debt with $6 Trillion Liabilities – BIS Q2

External debt

Abstract

In recent years, China’s role in global bilateral loans has grown significantly. By 2021, China held the largest share in official bilateral loans (other), amounting to 1.15 trillion USD. This reflects China’s increasing financial influence through initiatives like the Belt and Road Initiative (BRI), providing loans to developing countries for infrastructure projects. Historically, such loans were dominated by Western countries, but China’s rise marks a shift in global financial dynamics, with loans often provided on more flexible terms, though sometimes criticized for leading to debt dependency in borrowing nations.

Official bilateral loans other

Since 2004, Indonesia’s bilateral loans from overseas lenders have experienced notable fluctuations. The peak in 2004.75, at 4.86 trillion USD, marked a period of significant external borrowing, driven by infrastructure projects and economic needs. As of 2021, Indonesia stands at 2.35% below this peak, reflecting a reduction in reliance on such loans. This decline suggests a shift toward more sustainable debt management strategies and improved domestic financing capabilities. Over time, Indonesia has diversified its sources of funding, balancing external loans with domestic resources to support economic growth.

Official bilateral loans other
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The maximum is 4.86GUSD[2004.75] of Indonesia, and the current value is about 2.35%

Official bilateral loans other(worldwide)

Indonesia’s bilateral loans from overseas lenders peaked at 4.86 trillion USD in 2004.75, reflecting significant borrowing for development and infrastructure projects. Since then, loans have generally decreased, with current levels at 2.35% below the 2004 peak. This trend indicates a shift towards more balanced debt management and a reliance on diversified funding sources. Over time, Indonesia has reduced dependence on foreign loans, focusing on improving domestic financing and economic stability, while still engaging in external borrowing for strategic development needs.

Official bilateral loans other(worldwide)
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The maximum is 4.86GUSD[2004.75] of Indonesia, and the current value is about 2.35%

Official bilateral loans other (worldwide, latest year)

As of 2021, China leads global bilateral loans (official bilateral loans (other)) with 1.15 trillion USD, far surpassing the average of 160 billion USD. The total global figure for such loans stands at 14.2 trillion USD. China’s dominant share reflects its growing influence through initiatives like the Belt and Road Initiative, where it finances infrastructure projects in developing nations. This trend highlights China’s strategic expansion of financial diplomacy, contrasting with the more traditional lending practices of Western nations. As a result, bilateral loans have shifted towards more flexible terms under China’s leadership.

Official bilateral loans other (worldwide, latest year)
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The maximum is 1.15GUSD of China, the average is 160MUSD, and the total is 14.2GUSD

Official bilateral loans other (worldwide, latest year)

As of 2021, China leads global bilateral loans from overseas lenders, reaching 1.15 trillion USD, far exceeding the average of 161 billion USD. The total global amount stands at 14.2 trillion USD. This dominance reflects China’s growing economic influence, driven by initiatives like the Belt and Road Initiative, which supports infrastructure projects in developing countries. China’s strategic lending is reshaping the landscape of international finance, offering flexible loan terms and increasing its role in global development, while traditional Western lenders play a smaller part in this evolving trend.

Official bilateral loans other (worldwide, latest year)
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The maximum is 1.15GUSD of China, the average is 162MUSD, and the total is 14.1GUSD

Main data

Reference

The World Bank – Joint External Debt Hub

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