US senators oppose bailout of countries who entered into debt trap loans with China
Washington Free Beacon:
A bipartisan group of senators is urging the Trump administration to block the International Monetary Fund from bailing out several underdeveloped nations victimized by predatory Chinese loans made through the Belt and Road Initiative infrastructure development plan.It looks like these countries did this to themselves. Why should US funds be used to bail them out?
"We write to express our concern over bailout requests to the International Monetary Fund (IMF) by countries who have accepted predatory Chinese infrastructure financing," the 16 senators stated in a letter sent last week to the secretaries of Treasury and State.
China's Belt and Road Initiative is a global infrastructure funding plan that Beijing is using to expand its power and influence around the world.
Sri Lanka, Pakistan, and Djibouti have accepted billions of dollars in loans from China that the governments there are unable to repay. China is using the debt to control the policies of the countries, the senators said.