World's 75 Poorest Countries Owe China $22 Billion This Year: Think Tank
The world's 75 poorest countries are set to make debt repayments of $22 billion to China this year, according to a
'Debt service flows to China from developing countries will total $35 billion in 2025 and are set to remain elevated for the rest of this decade,' the Sydney-based Lowy Institute, which receives funding from the Australian Department of Foreign Affairs and Trade, said in the report. 'The bulk of this debt service, some $22 billion, is owed by 75 of the world's poorest and most vulnerable countries.'
The report comes as Peruvian Economy Minister Raul Perez Reyes met with China's ambassador to Lima, Song Yang, to discuss a new regional rail corridor that would terminate in the new port of
Peru's Ministry of Economy and Finance said in a
The Peruvian government said Fei Dongbin, head of the China National Railway Administration, and several other Chinese Communist Party (CCP) representatives were also present at the meeting.
The proposed railway would connect Brazil to Chancay, on Peru's Pacific coast, creating a trade route that would avoid Chinese ships having to travel through the Panama Canal, or around the southern tip of South America.
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China has given huge loans for infrastructure projects in many parts of the world, under Chinese leader Xi Jinping's Belt and Road Initiative (BRI).
The program has underwritten the building of huge ports such as
The Lowy Institute said, 'Now, and for the rest of this decade, China will be more debt collector than banker to the developing world.'
The report said that Beijing has transitioned from capital provider to net financial drainer on developing country budgets as debt servicing costs on BRI projects from the 2010s now far outstrip new loan disbursements.
In 54 of 120 developing countries from which there were available data, debt service payments to China exceeded the combined payments owed to the
The Paris Club is owed a total of $616 billion by 102 countries.
The report said China was prioritizing funding for neighbors such as Pakistan, Mongolia, and Kazakhstan, and also countries that provided important raw materials, such as the Democratic Republic of Congo, Indonesia, Brazil, and Argentina.
'Beijing faces a dilemma: pushing too hard for repayment could damage bilateral ties and undermine its diplomatic goals. At the same time, China's lending arms, particularly its quasi-commercial institutions, face mounting pressure to recover outstanding debts,' the author of the report, research fellow Riley Duke, said.
'How China's shift to chief debt collector will impact its reputation as a development partner and its broader messaging around South-South cooperation remains to be seen.'
He said highly indebted African states were often wary of rocking the boat and risking the loss of access to Chinese financing and trade.
'An increasingly transactional United States and distracted Europe have also likely fed a narrowed sense of their potential future economic pathways,' Duke added.
The report pointed out that BRI loans often seemed to come with strings attached, especially when it came to adhering to the CCP's 'One China' policy.
Honduras, Nicaragua, the Dominican Republic, Burkina Faso, and the Solomon Islands all received big loans within 18 months of dropping diplomatic recognition of Taiwan.
With China increasingly reining in BRI loans, Peru might find it harder to secure funding for the CFBC, which Lima described as a 'megaproject that would redefine South American regional integration.'
Reyes said, 'We are willing to co-finance our part of the tranche.'
The CFBC would link Lima with the city of Pucallpa in the Peruvian interior, and then across the border to Cruzeiro do Sul in Brazil, and via Vilhena, to the major metropolises of Sao Paulo and Rio de Janeiro.
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That's why Fischer advises people to secure rugs with nonslip pads and to ensure that paths are clear of clutter as first steps in making homes accessible. Adding handrails and grab bars in critical areas such as bathrooms, along staircases and in hallways would be next in reducing fall risks, Fischer said. Lighting is another quick and easy enhancement that is often overlooked, he added: Motion-sensor lights for hallways, staircases and entrances can go a long way toward mitigating accidents in the home. A final note from the experts when it comes to falls: Wearable smart devices can monitor heart rates and sleep patterns and detect falls. They can also alert emergency services if necessary, advises AARP. Devices like Google Home or Amazon Echo allow seniors to control lights with voice commands, They can also lock doors and operate televisions. Both Pollock and Rabban said their services are broken into two categories: maintenance and modifications. "When it comes to maintenance, you don't think of that as senior safety," Rabban said. "But when you think of seniors having to get up on a ladder to change their smoke detector batteries and things like that, it is." Each of their companies offers programs in which they will come to their clients' homes four times a year, or as needed, and perform routine maintenance. That involves things like changing old filters and batteries in smoke detectors, among other tasks. Common remedies include grab bars and railings, improved lighting and nonslip flooring, as well as switching out bathtubs for walk-in showers and widening doorways to make them more accessible. But there are a variety of other modifications that can be made for those looking to age in place, depending on needs. "When I say 'senior,' there's a very big spectrum. There's a really big difference between somebody who's 65 and somebody who's 85. so the needs for people are different," Rabban said. In some instances, Pollock has also added lockboxes to properties so that if the homeowner does fall or have some other accident, and they don't have family nearby, first responders can easily gain access to the home. Similarly, she has installed baby cameras so live-in help or relatives can keep track of seniors as they move around their home for further peace of mind. "If they have the choice of being able to stay in their home or going to assisted living, there are pros and cons to both. But overall, I think seniors want to stay at home because they're comfortable where they are," Pollock said. "Seniors should be able to stay in their home if that's what they choose, so having services available that help make their spaces safe is important." Costs and timing vary significantly. Simpler installations like grab bars range from $100 to $200. In terms of timelines, the most basic jobs like adding aluminum ramps, widening a doorway for a wheelchair or installing bars and a nonslip floor in a shower can be done in a day. Nestico said transforming a bathroom to be fully accessible might involve "redoing the surroundings to accommodate a roll-in shower or a walk-in tub, which can cost upwards of $10,000 to $12,000." The job typically takes two to three weeks to complete depending on the extent of the modifications and the need for custom solutions. Home elevators are among the most complex modifications, often requiring extensive planning, structural changes and lengthy time frames. "Comprehensive projects like installing an elevator start around $35,000, including all necessary construction and permits, and can take several weeks to months, depending on the complexity and the specific requirements of the building codes,' said Ryan Penn, owner of Mobility 123. Mobility 123 grew out of Penn's father's durable medical equipment company, Diamond Scooters, which sold scooters and wheelchairs in the early 2000s. The business now focuses on more extensive modifications like elevators. The company operates from three locations, in Absecon, Tuckerton and Hillsborough, and serves New Jersey, parts of Connecticut, and Philadelphia. The cost of Debbie and Charles Gibbs' three-stop elevator exceeded $60,000 due to additional construction and enclosing the elevator shaft, said Charles, 74. He emphasized the need to plan ahead financially: "We thought it was smart to do this while I'm still earning some money, rather than waiting until later." Accessibility modifications often can be partly financed through tax incentives, Medicaid programs, private insurance and veterans' benefits, said Tom Beck of Mobility 123, who also highlighted specific state resources. "In New Jersey, Medicaid typically covers about $5,000 for something like a stair lift and recently increased coverage to about $15,000 for prescribed needs," he said. The Department of Veterans Affairs "also offers grants for veterans, even if disabilities are not service-related." The Internal Revenue Service allows deductions for modifications deemed medically necessary. Eligible projects include widening doorways and hallways, installing ramps, adding grab bars, lowering countertops and adding stair lifts. To qualify, modifications must address a medical condition. Only expenses exceeding 7.5% of adjusted gross income are deductible, says Lifeway Mobility, a home accessibility company. Medicaid coverage varies by state. In New Jersey, some home modifications can be covered under the Managed Long Term Services and Supports program, says the state's Department of Human Services. Private health insurance coverage for such work differs significantly among policies. But some may cover prescribed modifications, so Penn suggests exploring both insurance and state aid programs. Traditional Medicare typically doesn't cover home modifications, its website says. However, some seniors with prescriptions may get limited coverage for enhancements like wheelchair ramps or walk-in tubs, says The Senior List, an online resource for older adults. Veterans with disabilities may also be eligible for grants through several programs, including the Specially Adapted Housing Grant for extensive home renovations and the Home Improvements and Structural Alterations Grant, which covers medically necessary projects like ramps and bigger doorways, says Rosarium Health, an accessibility company. Debbie Gibbs encouraged homeowners to start the process early. "From looking into an elevator to having it installed took about six months, mostly due to permitting and ordering," she said. "Planning ahead made it manageable." This article originally appeared on Home renovation tips for seniors looking to stay in family homes
