IMF MD Christine Lagarde China’s Belt and Road initiative is showing signs of progress but warned of potential debt risks for partner countries involved in joint projects. Photo: ReutersBeijing: International Monetary Fund (IMF) managing director Christine Lagarde said on Thursday that China’s Belt and Road initiative is showing signs of progress but warned of potential debt risks for partner countries involved in joint projects. President Xi Jinping’s Belt and Road Initiative, unveiled in 2013, aims at building a modern-day Silk Road connecting China by land and sea to Southeast Asia, Central Asia, the Middle East, Europe and Africa. Lagarde said the initiative can provide much needed infrastructure financing to partner countries, but should not be considered “a free lunch” by those nations. Belt and Road ventures can lead to a “problematic” increase in debt, potentially restricting other spending as debt service obligations rise, which could create balance of payment challenges.

Source: Mint April 12, 2018 06:45 UTC