What's new

Exim Bank of China is about to seize Uganda’s only international airport and some other of its assets, for non-repayment of a $207m loan.

Status
Not open for further replies.

Chhatrapati

BANNED
Aug 4, 2016
11,649
-22
9,800
Country
India
Location
Mauritius
Why I can't, cause you are an Indian accusing China a loan shark.

Over the period 2000 to 2018, China has written off $9.8bn of debt to other countries.
How India did in this regard?
My nationality has zero relevance on topic. And I didn't make the accusation, Africans did.

A loan write off is different from a wave off. If you write off the loan then it means you must have signed some other underhanded deal.
 

beijingwalker

ELITE MEMBER
Nov 4, 2011
43,208
-5
84,890
Country
China
Location
China
If Chinese money is that bad, why all the country turn to China for borrowing, including India?

China surpasses all other global lenders
Chinese state loans and trade credit to 150 nations crossed $1.5 trillion – surpassing state debts by the World Bank, the IMF, or all the total of OECD creditor governments


china_central_bank.jpg



Headquarters of the People's Bank of China (PBOC), the central bank, is pictured in Beijing, China September 28, 2018/ Reuters

With a huge trade surplus over the last two decades, China has emerged as a significant net lender to the world, especially to governments and state owned entities – many of which are in the developing world.

The Chinese government's claim to rest of the world surpassed $5 trillion, which is around 6 percent of the global GDP.

This figure includes China's $1 trillion portfolio investment in US treasury instruments.

However, as the Chinese authorities do not report their aggregated figures, the scale in state lending was unknown to the world until the Harvard Business Review recently published a report.

A wide range of data collected from diversified sources over years suggest that the Chinese state and its subsidiaries have already given $1.5 trillion in loans and trade credits to 150 nations and their state-owned entities.

This has turned China into the world's largest official creditor, surpassing traditional and official lenders such as the World Bank, the International Monetary Fund (IMF), or all Organisation for Economic Co-operation and Development (OECD) creditor governments combined.

The Harvard Business Review based its report on analysis of multi-year data compiled from hundreds of primary and secondary sources, put together by academic institutions, think tanks, and government agencies – including historical information from the Central Intelligence Agency. This provided the first comprehensive picture of China's official overseas debt stocks and flows worldwide.

It includes nearly 2,000 loans and nearly 3,000 grants given out since the founding of the People's Republic of China in 1949 to 2017. Most Chinese loans have helped finance large-scale investments in infrastructure, energy and mining.

Maximum market terms in state lending

Researchers Sebastian Horn of the University of Munich, Carmen M Reinhart, international financial system professor at Harvard, and Christoph Trebesch, macroeconomics professor at Kiel Institute for the World Economy, outlined the nature of Chinese state lending as similar to capital market terms.

They observed that most of the loans and credits by Chinese state entities are near to those from capital markets in terms of interest rate, collaterals, and the tough conditions in case of defaults.

Other funding to governments by states and international organisations like Breton Woods are much more concessional and includes more grants and aid.

For example, after World War II, the US had given $100 billion in today's value to the war-ravaged Europe for economic reconstruction. But 90 percent of that was grants and aid and very little was in market terms.

Developing world's liability to China growing rapidly

Average liabilities of 50 developing nations to China have increased from 1 percent of their GDP in 2005, to 15 percent of their GDP in 2017. To a dozen of them, the debt level is at least 20 percent of their GDP.

Since 2011, two dozen developing countries have restructured their debts to China.

More importantly, the analysis reveals that 50 percent of China's loans to developing countries go unreported, meaning that these debt stocks do not appear in the "gold standard" data sources provided by the World Bank, the IMF or credit-rating agencies.

Unreported lending from China has grown to more than $200 billion as of 2016.

https://tbsnews.net/economy/china-surpasses-all-other-global-lenders-48781
My nationality has zero relevance on topic. And I didn't make the accusation, Africans did.

Western media did, African and other developing countris are in good terms with China and debunked western media's China loan trap lies many times in various occasions.
 
Last edited:

Wood

FULL MEMBER
Mar 30, 2013
1,104
0
880
Country
India
Location
Canada
That's absolutely normal, not China's fault that those people can't do shit with the money they got as loan. if 2% interest seems very high, I would ask other western countries to provide african countries with lesser interest loans.
If I was the bank, I will seize the property as well. I see not reason for this entire thread to run.
It is more likely that they were too bullish on the prospects of the returns from the project. Countries that borrow money to build infrastructure do so with the hope that resulting monetary/non-monetary returns from the project will enable them to return the borrowed sum. More often than not, the bet will fail.

The borrowed sum here is a paltry $200m. Considering that it a national debt, Uganda may be able to get rid of it if they really want to. At the very least, the debt is not in Billions like in Sri Lanka.
 

Beidou2020

SENIOR MEMBER
Dec 3, 2013
7,379
-48
19,808
Country
China
Location
China
That's absolutely normal, not China's fault that those people can't do shit with the money they got as loan. if 2% interest seems very high, I would ask other western countries to provide african countries with lesser interest loans.
If I was the bank, I will seize the property as well. I see not reason for this entire thread to run.

Correct.

If I buy a house and I fail to make my mortgage payments, the bank seizes my house. It is not the fault of the bank, it is my fault for buying a house that I can’t afford. The house is the collateral. If I can’t pay my bills, the bank will take the property.

If countries want all these infrastructure, then they need loans. If the loan repayment terms isn’t being met, then the loan provider will seize the asset. If these countries can’t afford it, don’t sign up for loans. It is very simple. If there are others that give better payment terms, then do deals with them.

These countries want the best of both worlds, they want all the grand infrastructure and not pay back the loan. This is not aid, this is a loan.

The loan taker is at fault, not the loan provider.
 

northeast

FULL MEMBER
Jan 27, 2012
1,503
-3
1,405
Country
China
Location
China
Indians are jealousy. And They want chinese money become free lunch of african countries. Very cheap logic,no point to argue with them.
 

SuvarnaTeja

SENIOR MEMBER
Oct 7, 2018
3,247
-25
1,493
Country
India
Location
India
Sri Lanka

Hambantota was okay but Gwadar would be the icing on the cake. Looking forward to it.
Indians are jealousy. And They want chinese money become free lunch of african countries. Very cheap logic,no point to argue with them.

I fully agree. Indians should support and try to emulate Chinese success.
How does one physically seize an airport?

By putting PLA, PLAAN, PLAAF etc.
What's turkey's business here?

China and Turkey are partnering as part of BRI to destroy Greece.
 
Last edited:

Patriot forever

SENIOR MEMBER
Jun 2, 2020
2,490
4
4,773
Country
Pakistan
Location
Pakistan
lol idiots, didn't read the documents before signing.

Just put a few million on the table and even Pakistan leaders of that time signed every IPP contract. Even the Chinese were baffled at the speed 😂.

China is offering, it is the country's government responsibility to negotiate what is in their best interest. Design projects that are economically viable.
 
Last edited:

SuvarnaTeja

SENIOR MEMBER
Oct 7, 2018
3,247
-25
1,493
Country
India
Location
India
Debt trap. same model has been applied on Pakistan but Everybody was like CPEC this CPEC that lol. China has already made Pakistan a bigger beggar. hahaha. Anyway time for united states and allies to target China. Enough nonsense.

China saved Pakistan from the US. Chinese did deliver their part of the agreement as part of the CPEC.
 

925boy

SENIOR MEMBER
Sep 10, 2016
4,779
-30
5,276
Country
United States
Location
United States
Low interest loans with an interest rate of 2% are called toxic loans?
The average interest rate of Japanese loans to China from 1980 s to 1990 s was 4.2%. What kind of loan is it? The Japanese say that kind of loan is called aid to China.
if the interest rate is so small, why isnt Uganda able to pay it??
 

SuvarnaTeja

SENIOR MEMBER
Oct 7, 2018
3,247
-25
1,493
Country
India
Location
India
China hands out at least twice as much development money as the US and other major powers, new evidence shows.
The sheer amount of Chinese lending is startling. Not too long ago China received foreign aid, but now the tables have turned.
Over an 18-year period, China has granted or loaned money to 13,427 infrastructure projects worth $843bn across 165 countries, according to the AidData research lab at William & Mary, a university in the US state of Virginia.

_120720354_optimised-uschinaodaoof-nc.png

The narrative wrongfully portrays both Beijing and the developing countries it deals with.


China gives loans unconditionally while US & West ties their loans to their policies like democracy, Human rights and all other types of nonsense. China delivers while US and West sanctions.
if the interest rate is so small, why isnt Uganda able to pay it??

Corruption!
 
Status
Not open for further replies.

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)


Top Bottom