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Economy

ADB chief warns of Belt and Road debt trap

Nakao urges countries to carefully weigh viability of China-backed projects

Kenya Railways attendants receive a train launched to operate on the Standard Gauge Railway line constructed by the China Road and Bridge Corporation and financed by Chinese government in Nairobi, Kenya.   © Reuters

MANILA -- The head of the Asian Development Bank on Thursday warned countries against unsustainable borrowing to fund infrastructure projects, which could leave them stuck in a debt trap.

ADB President Takehiko Nakao told reporters that China's Belt and Road Initiative is a key program to connect regions and broaden integration and cooperation across Asia, and that the ADB would cooperate with China when appropriate. But he cautioned against excessive borrowing to cover infrastructure gaps.

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