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Belt and Road

$385bn of China's Belt and Road lending kept undisclosed: report

Beijing's loans to Pakistan cost 3.76% interest, while Western peers offer 1.1%

China systematically underreports its debt to the World Bank's Debtor Reporting System by lending money through special purpose vehicles, a study reveals. (Source photos by AP and Reuters) 

KARACHI -- A staggering $385 billion of Chinese debt to other countries has been hidden from the World Bank and IMF thanks to the way the loans are structured, U.S.-based AidData said on Wednesday in its latest version of the Global Chinese Official Finance Dataset. The report also alleges that a major portion of Chinese development financing in Pakistan is composed of expensive loans.

The AidData report claims Beijing has made its overseas development finance nontransparent. It says that China systematically underreports its debt to the World Bank's Debtor Reporting System by lending money to private companies in lower middle income countries by using special purpose vehicles (SPVs), rather than to state institutions.

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