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Einaudi Center for International Studies

The Health and Welfare Costs of Sovereign Serial Restructurings: Two Decades of Chinese Lending Practices and Their Impacts on Debtor Nations

Khanh Nguyen headshot

Author: Khanh Nguyen

Since 2000, China has emerged as the largest bilateral creditor to developing countries, offering extensive financing through the Belt and Road Initiative. Amid rising defaults and repayment challenges, Chinese state-owned banks have relied heavily on serial restructurings: maturity extensions without face value reductions. While such strategies preserve loan nominal values in the short term, they risk perpetuating debt cycles without addressing underlying solvency issues.

White Paper

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  • White Paper

  • CRADLE White Paper Series

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Publication Year: 2025

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