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Pakistan to seek debt restructuring of CPEC power projects

Mk-313

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Which idiot A-hole agreed to pay Dividends of $1.5 Billion?? It is insane, and shows much corruption is in Pakistan's Government and Establishment.
dude it’s 1.5 billion over 12 years which comes about to be 8% APR/year. It’s a little on the high end scale but pretty standard

Western banks and world bank would sanction the loan at 4-5%. And given the High degree of risk of non repayment from Pakistan the lender would charge a higher APR to recoup as much money as it can
 

ARMalik

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dude it’s 1.5 billion over 12 years which comes about to be 8% APR/year. It’s a little on the high end scale but pretty standard

Western banks and world bank would sanction the loan at 4-5%. And given the High degree of risk of non repayment from Pakistan the lender would charge a higher APR to recoup as much money as it can
Read Again:

In addition to the $3 billion principal payments, the dividend payments also stand at $1.5 billion during the next three fiscal years.
 

Vapour

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So IK was right to postpone and carefully consider each CPEC project because of the poorly negotiated terms by the corrupt, criminal PMLN govt of Nawaz Sharif.

We can't blame China for getting such a good deal for itself, this is all PMLN's fault for pulling such election stunts so that they could secure another term in power (which they failed to do anyway).
 

Norwegian

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CPEC was establishment project, Nawaz was front men. Blame as usual lies with establishment/army. Hell I remember there was plan to build dozen imported coal power plants 6600MW in coast of Balochistan. Thankfully that didnt go anywhere otherwise imagine capacity payments now.
Typical Nawaz Ganja supporter. First give him credit for motorways, nukes, cpec, orange train etc etc. And when things go wrong, blame it on the selectors.
2248E7CD-CAB0-4052-A64E-DAFA10111AA7.jpeg
 

Vanamali

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Which idiot A-hole agreed to pay Dividends of $1.5 Billion?? It is insane, and shows much corruption is in Pakistan's Government and Establishment.
It is a strategic cost which Pak is willing to pay to involve China in Pak Administered Kashmir..
 

Dr. Strangelove

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And people were going ape shit when PMIK slowed down and stopped several projects related to CPEC For Review in 2018-19. That was the right decision than and its the right decision now. I hope something comes of this.
 

vi-va

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What is IMF - is it Iron Bro Monetary fund? :lol:

Jokes apart, World Bank suspended debt servicing for Pakistan saving her 3.4 billion $ and IMF 1.4 billion $ in 2020.

Good. Thank you, man.
IMF is every members' money. Same as World Bank.
 

Mk-313

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Read Again:

In addition to the $3 billion principal payments, the dividend payments also stand at $1.5 billion during the next three fiscal years.
Read it again more closely it said the due payment in the 3 years is the $3 billion principal and 1.5 billion dividend. It doesn’t mean that that dividend is against that $3 billion loan i.e 50% ROI. It’s just telling you what’s due. That dividend is from another loan or series of loans or a tranche payment

because the repayment on the $3billion electricity loan is supposed to be recouped by adding a tariff of the electricity generated. That’s why it says it would take 12 years for the public of pakistan to repay that loan in the form of tariffs
 
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SoulSpokesman

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@Mk-313

That dividend is from another loan or series of loans

The dividend would be typically against the equity component of the project funding. It would be a subset of the Return on Equity (ROE) component of the tariff. It is not an additional burden on the exchequer but does result in an outflow of forex and strains the balance of payments position.

Regards
 

Mk-313

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@Mk-313

That dividend is from another loan or series of loans

The dividend would be typically against the equity component of the project funding. It would be a subset of the Return on Equity (ROE) component of the tariff. It is not an additional burden on the exchequer but does result in an outflow of forex and strains the balance of payments position.

Regards
of course it is. But The other guy was thinking that 1.5 billion is against the $3 billion loan

and look Chinese are on a little high side but they are taking an enormous amount of risk with you guys because usually other countries throw capital at you like IMF and request interest on u guys
Chinese are converting capital (risk) to equity (risk) then based on if that equity works (risk) and generates more capital only then they would get their dividends

and also on the hindsight it shouldn’t strain the balance of payments account. If the infrastructure work your exports should increase which should in turn put more dollars in your country which should strengthen your reserve and have enough float to cover your payments

and bonus if ur currency strengthens against thedollar u actually have to pay less since ur paying in USD
 

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