Who is the biggest debtor of the World Bank?
No country owes the bank more than India, Indonesia and Pakistan. There are 121 low- and middle-income countries feeding into to the World Bank's (WB) debtor reporting systems, but almost half of the $391bn owed to the Washington-based multilateral lender traces back to just 10 of them. India takes the top spot.
List Of Countries With Biggest Loans From World Bank. With a borrower's obligation of more than 2,000 crore dollars currently, India owes the most amount as loan repayment to the World Bank.
- Japan. Japan has the highest percentage of national debt in the world at 259.43% of its annual GDP. ...
- United States. ...
- China. ...
- Russia.
Argentina is the biggest debtor to the IMF, with a total outstanding debt of $42.9bn. The country has had a long and troubled relationship with the IMF, with a history of equally spectacular fall-outs and bail-outs. At the turn of the century, the IMF made $88.3bn available to bail out the country's ailing economy.
The World Bank and the United States
As the World Bank Group's largest shareholder, the United States has a long history of supporting the Bank Group's mission and addressing development challenges of vital importance through its support of Bank Group programs.
Debt as a share of GDP has risen to about the same level as in the United States, while in dollar terms China's total debt ($47.5 trillion) is still markedly below that of the United States (close to $70 trillion). As for non-financial corporate debt, China's 28 percent share is the largest in the world.
Foreign countries buy US Treasury securities since they are considered as one of the most secure assets. Among other countries, Japan and China have continued to be the top owners of US debt during the last two decades.
1) Switzerland
Switzerland is a country that, in practically all economic and social metrics, is an example to follow. With a population of almost 9 million people, Switzerland has no natural resources of its own, no access to the sea, and virtually no public debt.
| Country/territory | US foreign-owned debt (January 2023) |
|---|---|
| Japan | $1,104,400,000,000 |
| China | $859,400,000,000 |
| United Kingdom | $668,300,000,000 |
| Belgium | $331,100,000,000 |
In 1985, the United States officially became the world's largest debtor. Indeed, the United States has been running a trade deficit for most of the past 40 years, meaning that it imports more goods and services than it exports.
Is USA a debtor of IMF?
WASHINGTON (Reuters) - The International Monetary Fund's current debtor-creditor balance gives the United States an outsized weight in the voting, which translates into Washington holding roughly 25 times the voting power of Argentina, the bank's biggest debtor.
The country's total sovereign debt exceeds $400 billion, some $110 billion of which is owed to the International Monetary Fund and to holders of restructured, privately-held eurobonds.
As of 2021, China had officially lent around $180 billion to low and middle-income countries, up from just around $40 billion in 2010.
As the only World Bank Group shareholder that retains veto power over certain changes in the Bank's structure, the United States plays a unique role in influencing and shaping global development priorities.
During the past 75 years, its role has broadened to include poverty reduction efforts through social projects (such as education and health) and policy-based loans. Congress appropriates U.S. financial contributions to the World Bank and exercises oversight of U.S. participation in the Bank.
Within the World Bank Group, China is one of the largest loan-taking countries.
Of the $33T of debt, roughly 78% is owned by the public (70% US vs 30% International). The major US public owners include the FED ($6T, but they are no longer buyers), mutual funds, banks, states, pension funds and insurance companies.
With $1.1 trillion in Treasury holdings, Japan is the largest foreign holder of U.S. debt.
China's debt is more than 250 percent of GDP, higher than the United States. It remains lower than Japan, the world's most indebted leading economy, but some experts say the concern is that China's debt has surged at the sort of pace that usually leads to a financial bust and economic slump.
China owns 384,000 acres of American agricultural land. That's a 30% increase just since 2019. And on top of that, they own land near an air force base in North Dakota.
What would happen if China called in U.S. debt?
If China called in all of its U.S. holdings, the U.S. dollar would depreciate, whereas the yuan would appreciate, making Chinese goods more expensive.
China owns 380,000 acres of land in the U.S. Here's where
The Smithfield feed processing mill producing food for nearby hog-raising farms in Milford, Utah. In 2021, a Chinese company bought land near an Air Force base in Grand Forks, N.D., sending lawmakers into a frenzy.
| External debt (USD) | ||
|---|---|---|
| Per capita | Total | |
| United States | 77,707 | 25.9 trillion |
| United Kingdom | 141,995 | 9.65 trillion |
| Japan | 34,832 | 4.49 trillion |
Under current policy, the United States has about 20 years for corrective action after which no amount of future tax increases or spending cuts could avoid the government defaulting on its debt whether explicitly or implicitly (i.e., debt monetization producing significant inflation).
One of the main culprits is consistently overspending. When the federal government spends more than its budget, it creates a deficit. In the fiscal year of 2023, it spent about $381 billion more than it collected in revenues. To pay that deficit, the government borrows money.
