Post by Boston University Global Development Policy Center

In 2023, China's Ministry of Finance released the Debt Sustainability Framework for Market Access Countries of the Belt and Road Initiative (BRI), aiming to assess the debt sustainability of its investment partners worldwide. Modeled on the International Monetary Fund's Debt Sustainability Framework, China's methodology for BRI countries accounts only for liabilities and overlooks the accumulation of public assets. A new paper by Yan Liang points out that debt sustainability assessment (DSA) should account for the contributions of BRI financing to public asset formation, economic growth and the generation of foreign exchange revenues. Link in comment 🔗