A senior Treasury official, Brent Neiman, will publicly air concerns about China's opaque lending practices, urging the IMF to demand transparency in these agreements.
Countries swap their currency for renminbi with high interest rates, obscuring true debt levels, making fiscal challenges harder to assess for other investors.
China's central bank has 31 currency swap agreements totaling $586 billion, raising alarms about the lack of clarity surrounding the loans and their implications.
With over $200 billion in emergency financing, the high interest rates and hidden terms of Chinese loans deepen borrowing countries' ties to China and complicate their fiscal situations.
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