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Beijing’s big bailouts

FT News Briefing

China's Bailout Loans to Troubled Countries

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Lion's share of 240 billion in loans is what's called swap line lending. This is a loan from the Chinese central bank to the central bank of that developing country. It prevents that country from effectively going bust, rather like Sri Lanka is at the moment. If there was going to be widespread default throughout the developing world, those Chinese banks would really suffer because they have been engaged in lending to the Belt and Road initiative over the last 10 years.

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