They fall into what’s known as the debt trap.
The lender arm twists the borrower into accepting more debt with even more unfair terms or straight up starts using the project they financed as the lender’s private property.
Eg. China has funded and helped build a port in Sri Lanka, now that Sri Lanka is unable to pay back so now the Port is owned by China now.
https://www.livemint.com/opinion/columns/chinas-sri-lankan-port-grab-adds-a-pearl-to-its-string-11622393656645.html
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