Laos Debt Crisis: Another neighbouring country ruined by China’s debt, reached the point of begging

Another neighboring country of China is groaning under the heavy burden of debt. The situation has reached such a point that this country is now going to default. The only reason for this country reaching the threshold of default is the debt of China. China has given a huge amount of loan to this country. Now this country is not able to return the loan taken from the rest of the world except China and is demanding debt restructuring. However, China, as before, has washed its hands off the matter and is saying that it is ready to help. Earlier, Sri Lanka has defaulted due to Chinese debt and Pakistan is repeatedly saving itself after reaching that threshold.
Another country ruined by Chinese debt
Let us tell you that the name of this country ruined by Chinese debt is Laos, Laos is a neighboring country of China. Only last year, China inaugurated the railway line for Laos. Now Laos is suffering the punishment of its love for China. However, China says that it is helping neighboring Laos to reduce its heavy debt burden. Meanwhile, Laos has revealed that its external repayments have almost doubled. In such a situation, it wants more debt moratorium to prevent default. However, the parties lending money to Laos are not ready for this.
What did China say on Laos’ debt?
A Chinese Foreign Ministry spokesperson said in a written response to questions on Tuesday that Beijing has carried out mutually beneficial cooperation with developing countries including Laos, including strong support for economic and social development. At the same time, it is doing its best to help relevant countries reduce their debt burdens, he said.
Laos has the highest debt of China
China is by far Laos’s biggest creditor, shouldering nearly half of its $10.5 billion in external government debt. At the end of last year, the tiny country’s total public and publicly guaranteed debt was $13.8 billion, 108 percent of its GDP