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The Complicated Geopolitics Behind the G20’s Debt Suspension Program

Africa economist Mark Bohlund made an interesting observation yesterday following the news that both Djibouti and Zambia had been approved by the G20 to take part in the Debt Service Suspension Initiative. The fact that both countries owe little to nothing to one of China’s largest policy banks, the China Development Bank, may have played a role in their admission to the DSSI.

There are longstanding concerns in U.S. and European capitals that any debt relief afforded to African countries may be used to repay loans to China or that China’s three enormous policy banks will otherwise benefit indirectly.

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