Glossary · Debt-Trap Diplomacy

Debt-Trap Diplomacy

A contested claim that a creditor deliberately extends unsustainable financing to obtain political or strategic leverage over a borrower.

Term type · Contested allegation, not established misconductTypes of Diplomacy

Why it matters for foreign affairs

The expression influences debates over development finance, infrastructure governance and sovereign debt but should not be stated as settled fact.

Where it appears in practice

Chatham House disputes the standard debt-for-asset-swap interpretation of Sri Lanka’s Hambantota Port case; the claim must be described as contested, not established fact. Source