Home » Montenegro is trapped in China’s “Belt and Road debt trap”! Asking the EU to return 33.8 billion yuan is rejected | International | 新头壳 Newtalk

Montenegro is trapped in China’s “Belt and Road debt trap”! Asking the EU to return 33.8 billion yuan is rejected | International | 新头壳 Newtalk

by archyde

Montenegro’s request for the EU to help repay the huge debt of China’s “Belt and Road” was rejected. (Schematic diagram) Picture: Retrieved from the World Wide Web

Montenegro, a Balkan country that is expected to join the European Union, has fallen into China’s “Belt and Road debt trap” with debts of 4.33 billion euros (about 145.677 billion Taiwan dollars), accounting for 103% of its GDP. The International Monetary Fund once believed that the country could no longer afford any new debt. Montenegro’s request for EU assistance in repaying its debt was rejected. However, the EU pointed out that Montenegro can be funded through investment schemes.

Montenegro decided to build a new highway in 2014. The road is 165 kilometers long and connects the Adriatic Sea in Montenegro with neighboring Serbia. Montenegro signed a contract for the first phase of construction with China Road and Bridge Engineering Co., Ltd., and China undertook the construction of the 41km section of the first phase and provided Montenegro with a loan of 1 billion euros (approximately 33.88 billion Taiwan dollars). Montenegro began to repay loan interest this year, but it encountered the Wuhan pneumonia epidemic. The tourism industry, the main source of income, was the first to bear the brunt, which dragged down the repayment ability and had debts of up to 4.33 billion euros.

Montenegro’s deputy prime minister, Dritan Abazovic, said last month that in order to prevent Montenegro, a “quasi-EU member,” from relying on Beijing, the EU should help Montenegro restructure its debt. The spokesperson of the European Commission responded that all countries are free to make investment decisions, but the EU will not repay debts for third parties. Montenegro must try to repay Chinese loans, but the EU can use a total of 9 billion euros (about 304.877 billion Taiwan dollars). )’S economic and investment plan for the Western Balkans to fund the construction of the remaining sections of the highway in Montenegro.

Montenegro’s road construction plan has been controversial because it involves China’s influence in Europe. The European Commission stated: “The European Union is concerned about the possible socio-economic and fiscal effects of some Chinese investments, and is worried about the risks of macroeconomic imbalances and excessive reliance on Chinese loans.” Some German and American scholars found after analysis that China has borrowed a lot of money to build infrastructure in developing countries through the “Belt and Road” initiative, and used this channel to expand its influence on these countries and make them a vassal.

Montenegro, a Balkan country that is expected to join the European Union, has fallen into China’s “Belt and Road debt trap” with debts of 4.33 billion euros (about 145.677 billion Taiwan dollars), accounting for 103% of its GDP. The International Monetary Fund once believed that the country could no longer afford any new debt. Montenegro’s request for EU assistance in repaying its debt was rejected. However, the EU pointed out that Montenegro can be funded through investment schemes.

Montenegro decided to build a new highway in 2014. The road is 165 kilometers long and connects the Adriatic Sea in Montenegro with neighboring Serbia. Montenegro signed a contract for the first phase of construction with China Road and Bridge Engineering Co., Ltd., and China undertook the construction of the 41km section of the first phase and provided Montenegro with a loan of 1 billion euros (approximately 33.88 billion Taiwan dollars). Montenegro began to repay loan interest this year, but it encountered the Wuhan pneumonia epidemic. The tourism industry, the main source of income, was the first to bear the brunt, which dragged down the repayment ability and had debts of up to 4.33 billion euros. Montenegro’s deputy prime minister, Dritan Abazovic, said last month that in order to prevent Montenegro, a “quasi-EU member,” from relying on Beijing, the EU should help Montenegro restructure its debt. The spokesperson of the European Commission responded that all countries are free to make investment decisions, but the EU will not repay debts for third parties, and Montenegro must try to repay Chinese loans.

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