Developing countries indebted to China will repay record amounts this year.

 A study conducted by the Australian Lowy Institute, the results of which were published on Tuesday, showed that developing countries indebted to China will repay record amounts this year, describing it as a financial "tsunami" of loan repayments and interest payments.

These loans are part of China's global infrastructure development initiative, known as the "New Silk Roads." This is a massive initiative launched by China in 2013 to develop trade links with the rest of the world and secure supplies.

In the study conducted by the Lowy Institute, an independent think tank based in Sydney, researcher Riley Docken said, "Developing countries are facing a massive wave of debt repayments and debt service to China."

According to the study, over the next ten years, China will no longer be the "bank for developing countries" but rather a "loan collector," meaning that borrowers will repay more money than they borrow.

The institute based its study on World Bank data to calculate developing countries' repayment obligations.

The world's 75 poorest countries are expected to "pay record debt repayments to China" in 2025, totaling an estimated €19 billion.

While Chinese lending is declining almost everywhere in the world, the report notes two areas that appear to buck the trend.

Honduras and the Solomon Islands received loans from China after they severed diplomatic relations with Taiwan in 2023 and 2019, respectively.

Indonesia and Brazil have also signed new loan agreements with China in recent years, as the country seeks to secure its supplies of minerals and metals.

Critics of the Belt and Road Initiative warn of the risk of some member states falling into a Chinese debt trap.

In response to a question on this matter on Tuesday during a regular press conference, Chinese Foreign Ministry spokeswoman Mao Ning said she "does not know the basis for this report.

She emphasized that "cooperation between China and developing countries in the areas of investment and finance is conducted in accordance with international practices, market rules, and debt sustainability principles." She added, "Some countries like to promote the theory of China's responsibility for this debt, while being careful not to emphasize the role of multilateral financial institutions and commercial creditors from developed countries, which are in fact the primary creditors to developing countries and the main source of the repayment pressures they face."