Laos on a fast track to a China debt trap

Mar 29, 2018 by

Beijing-backed US$6.7 billion high-speed railway project threatens to bust the small nation’s already fragile finances

By David Hutt –

Laos is one of eight global countries considered of “particular concern” for a future debt crisis, according to a recent report by the Center for Global Development (CGD), a Washington-based economic think tank.

The main cause of concern is the small poor country’s big rich plans for a US$6.7 billion high-speed railway that China is promoting as part of its Belt and Road Initiative (BRI). The project’s cost represents a quarter of Laos’ current gross domestic product (GDP).

 

Source: Laos on a fast track to a China debt trap | Asia Times

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