By Martin Gøttske
China’s Belt and Road initiative (BRI) will benefit its own economy, but will also pose evident challenges. That’s the assessment in a new report from Moody’s Investors Service on the initiative, which aims to strengthen linkages between China and a host of countries in Eurasia and beyond.
BRI will potentially be credit positive for BRI recipient countries by helping their infrastructure funding needs and consequently enhancing their productivity. Potential credit-negative effects, says Moody’s, could stem from an implied shift in BRI recipients’ debt structure towards more expensive and less transparent funding.
Moody’s Investors Service: https://www.moodys.com/research/Moodys-Chinas-Belt-and-Road-Initiative-is-credit-positive-overall–PR_372698?WT.mc_id=AM%7eRmluYW56ZW4ubmV0X1JTQl9SYXRpbmdzX05ld3NfTm9fVHJhbnNsYXRpb25z%7e20170918_PR_372698