The debt trap refers to the policies of a powerful country that attempts to capture the resources of a weaker country under the umbrella of financial aid diplomacy at higher interest rates. In general, weaker countries without investors cannot control lending. As a result, they do not pay interest. Therefore, they find themselves trapped in the vicious. China has not engaged in deliberate “debt trap diplomacy” in the Pacific, but the growing scale of Chinese lending and the institutional weakness of Pacific states present clear risks. What three different countries can tell us about the global debt problem – and China's role in debt distress and debt relief. A Tale Nations: Debt Restructuring in Ghana, Zambia and. The terms of the loan risk accumulating a debt burden that will last for a long time, the charity claims. The world's least developed countries received 3.2 billion in loans – help them. Abstract. Summary This article analyzes the determinants of long-term external debt for a large sample of developing countries. We found this, in addition to standard economic variables.