The country will allocate nearly 5 percent of its gross domestic product (GDP) to pay interest and repay loans previously contracted to Chinese entities, according to the report released by the Center for Finance and Green Development at Fudan University, one of China's most prestigious universities. , in Shanghai.
According to the financial rating agency Standard & Poor's, Angola owes around US$21 billion to China. Oil serves as collateral for credit lines negotiated with Beijing.
The Fudan study showed that, in all, the world's poorest countries will this year pay around US$13.7 billion to Chinese creditors, or 26 percent of their total debt service.
The report, prepared by Mengdi Yue and Christoph Nedopil Wang, noted that the amount of China's loans to developing countries is second only to that of the World Bank's International Development Association.
The collective debt burden faced by the 68 low-income countries rose by 12 percent to a record $860 billion in 2020.
Compared to 2015, the number of countries showing signs of debt distress has doubled.
China is the biggest creditor of 17 countries, along with the World Bank, according to the same study.
As the leading creditor of 17 low-income countries, China "has more responsibility and opportunities to provide bilateral and multilateral support for debt restructuring than other countries," the report's authors wrote.
