Skip to main content

Belt and Road Financing Plunges

Belt and Road Financing Plunges

_China’s Belt and Road project is feeling the coronavirus headwinds with deal value plunging 64 percent year-on-year in the first quarter of 2020,_ according to *Refinitiv data.*

The $137.4 billion was sourced from 184 projects – a 16 percent drop compared to last year, according to the fourth edition of Refinitiv’s report on the Belt and Road Initiative (BRI). 

Still, the 3,164 total BRI projects and deals recorded by Refinitiv surpassed the $4 trillion mark for the first time in the quarter. Russia is the biggest beneficiary of BRI ($296 billion from 126 projects) followed by Saudi Arabia ($185 billion from 111 projects) and Malaysia ($146 billion from 57 projects).

«Pandemic Crashes BRI Party»

According to Refinitiv comments under a subsection entitled «Pandemic Crashes BRI Party», there is little to celebrate apart from the total deal value milestone.

«The $4 trillion milestone was a bright spot in an otherwise subdued environment, as China emerged as the epicenter of the Novel Coronavirus (COVID-19) that has swept across the world,» the report said. 

In addition to a domestic slowdown – the International Monetary Fund (IMF) forecasts 1.2 percent growth for China in 2020 – some of the largest BRI participants in the Middle East and South Asia are suffering from even greater slowdowns and have «little appetite to pursue projects as their economies remain in stasis». 

Debt Distress

And even before the pandemic, many emerging economies were already suffering from high debt distress with the Center for Global Development naming 23 BRI countries including, most urgently, Djibouti, Mongolia, Kyrgyzstan, Laos, the Maldives, Pakistan and Montenegro.

The IMF had already approved $100 billion to emerging market and developing countries that are facing urgent financing needs. Debt relief is also being sought after through other multilateral organizations like the «Paris Club» or sovereign lenders like China through moratoriums or some write-offs. 

«Soft Power»

According to Refinitiv, Beijing could fare better in terms of its «soft power» by providing relief rather than focusing on the pure economics of the current crisis.

«By demonstrating flexibility – as it did with Malaysia last year when it renegotiated projects on better terms for the South East Asian state – Beijing will be able to garner goodwill and further its ‘soft power’ as a benefactor rather than a pure lender,» the report said.

«That could pave the way for the next wave of BRI projects that will be required to connect Eurasia to Africa and South East Asia.»

Belt and Road Financing Plunges -


Popular posts from this blog

SSG Commando Muddassir Iqbal of Pakistan Army

“ Commando Muddassir Iqbal was part of the team who conducted Army Public School operation on 16 December 2014. In this video he reveals that he along with other commandos was ordered to kill the innocent children inside school, when asked why should they kill children after killing all the terrorist he was told that it would be a chance to defame Taliban and get nation on the side. He and all other commandos killed children and later Taliban was blamed. Muddassir Iqbal has deserted the military and now he is  with mujahedeen somewhere in AF PAK border area” For authenticity of  this tape journalists can easy reach to his home town to interview his family members or   ISPR as he reveals his army service number” Asalam o Alaikum: My name is Muddassir Iqbal. My father’s name is Naimat Ali. I belong to Sialkot divison (Punjab province), my village is Shamsher Poor and district, tehsil and post office  Narowal. Unfortunately I was working in Pakistan army. I feel embarrassed to tell yo

RWR Advisory: Belt and Road at a Glance

This edition covers developments from March 12 - March 26..  Belt and Road at a Glance   Subscribe to the Belt and Road Monitor Top Developments China National Machinery Industry Corporation, commonly known as Sinomach, has agreed to  build  a $845 million, 255-mile railway across  Iran , building upon a sustained period of growth for Chinese investment in Iran that accelerated after Xi Jinping’s state visit to the country in January 2016. The railway will link the cities of Tehran, Hamedan and Sanandaj. China Civil Engineering Construction, a subsidiary of CRCC, is currently also  building  a 263-km railway line from Kermanshah to Khosravi. According to Chinese entrepreneur Lin Zuoru, who  owns  factories in Iran, “Iran is at the center of everything.”On March 23, China’s Ministry of Commerce announced that foreign direct investment by Chinese companies in 50 Belt and Road countries fell by 30.9% year-on-year. While the Ministry stated that this number covers investment across al

CPEC Jobs in Pakistan, salary details

JOBS...نوکریاں چائنہ کمپنی میں Please help the deserving persons... Salary: Salary package in China–Pakistan Economic Corridor (CPEC) in these 300,000 jobs shall be on daily wages. The details of the daily wages are as follows; Welder: Rs. 1,700 daily Heavy Duty Driver: Rs. 1,700 daily Mason: Rs. 1,500 daily Helper: Rs. 850 daily Electrician: Rs. 1,700 daily Surveyor: Rs. 2,500 daily Security Guard: Rs. 1,600 daily Bulldozer operator: Rs. 2,200 daily Concrete mixer machine operator: Rs. 2,000 daily Roller operator: Rs. 2,000 daily Steel fixer: Rs. 2,200 daily Iron Shuttering fixer: Rs. 1,800 daily Account clerk: Rs. 2,200 daily Carpenter: Rs. 1,700 daily Light duty driver: Rs. 1,700 daily Labour: Rs. 900 daily Para Engine mechanic: Rs. 1,700 daily Pipe fitter: Rs. 1,700 daily Storekeeper: Rs. 1,700 daily Office boy: Rs. 1,200 daily Excavator operator: Rs. 2,200 daily Shovel operator: Rs. 2,200 daily Computer operator: Rs. 2,200 daily Security Supervisor: Rs.