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.

[Beidou2020]

We all know Chinese deals are enticers to corrupt leadership of these countries. Chinese are like the village pawn shop who would lend money to incompetents of the family knowing fully well that they can't pay back, yet do so just to capture the family assets. Societies despise such people.

Get on your knees and beg doggy

 

[beijingwalker]

I wonder why all the south Asian countries go for China for loans, If Chinese money is all that bad and Indian money is all that good, how come even India's immediate neighbors all choose China over India, let alone African countris? India's reputation among south Asian nations really sucks, even in this forum we can clearly see it.

 

[Vanamali]

While G.O.I is bailing out Indian banks with taxpayers Money plus starting a collection agency, but in all that doom and gloom at home, its so nice to see Indians are worried about their neighbours


With more than 150,000 branches loaded with $2tn (£1.46tn) worth of deposits and serving over a billion customers, India's banks look impressive on paper.
In reality, they are in a mess.
A clutch of banks is saddled with tens of billions of dollars of bad loans after years of injudicious lending to dud projects. State-owned banks account for more than 60% of the sour debt. Five banks have been rescued from collapse since 2018.


The bailouts - more than $35bn of taxpayers' money was injected to revive ailing banks between 2005 and 2009 alone - haven't helped much. In July last year, Fitch Ratings said India's struggling banks would need between $15bn-$58bn in infusion of fresh funds by 2022.
Now the government plans to float a long talked-about "bad bank" which will try to tame $27bn of bad loans and clean up the balance sheets of commercial banks.

This would still be a quarter of India's estimated $100bn of bad loans on the books of commercial banks. The resultant squeeze on credit has not only hobbled banking but undermined growth: private investments have nosedived as risk-averse banks are unwilling to lend freely.




Its Nice to see you are aware of situation outside your country
https://www.bbc.com/news/world-asia-india-58654740

At less than 60% India's credit to GDP ratio remains low, yet its banks have some of the highest non-performing loans in the world.

A "bad bank" - also described as an asset reconstruction company - typically buys bad loans from affected banks at an agreed price. Then it liquidates or sells assets that borrowers have offered as securities against loans. The proceeds from the sales help the banks recoup some of the money they had lent to companies.
This is not the first time India has faced a bad loan crisis or launched a "bad bank". In fact, there have been 28 such firms, all privately owned, in the past two decades, but recoveries have been underwhelming.
This time, the government has formed two companies - one which will acquire the bad loans and will be state owned; and the other, partly privately owned, will try to sell the assets.
The government will pay the difference between the expected value of assets by the commercial bank and what the "bad bank" will be able to raise from the asset sales.

Are you saying that Indian banks will fail and will take loans from China... we will see.. I can assure that before that happens.. we will change the ruling party ruthlessly.. and coming to Pakistan.. what is your survival plan?? Pls share it bro... we don't want to do same mistake of taking loan from China and want to learn survival lessons from Pakistan.

 

[beijingwalker]

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.

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

The Chinese ‘Debt Trap’ Is a Myth

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

www.theatlantic.com

Chinese aid – a blessing for Africa and a challenge to western donors

To Africa, the emergence of China as a major development funder presents a clear advantage. It gives access both to new substantial re...

www.cmi.no

 

[Itachi]

China have given loan with collateral of their airport

So state level loan sharks?

China To Seize Uganda’s Main Airport For Over Debt

The Exim Bank of China iss about to seize Uganda’s main airport, Entebbe International Airport for non-repayment of a $207m loan. Uganda signed a loan agreement with the Chinese bank which had repayment terms attached to its only airport. According to reports, this agreement stipulates that in...

www.naijanews.com

Museveni to surrender Uganda’s only international airport over Chinese loan

It has emerged that Uganda is set to lose its most prominent and only international airport to Chinese lenders.

guardian.ng

On Tuesday, 17 November 2015, the Uganda government signed an agreement with Export-Import Bank of China (Exim Bank) to borrow $207 million at two per cent upon disbursement. The loan had a maturity period of 20 years including a seven-year grace period.

It has now emerged that the deal signed with the Chinese lenders virtually means Uganda “surrendered” its most prominent and only international airport.

The Uganda Civil Aviation Authority (UCAA) says some provisions in the Financing Agreement with China expose Entebbe International Airport and other Ugandan assets to be attached and taken over by Chinese lenders upon arbitration in Beijing.

It also emerged that China has rejected recent pleas by Uganda to renegotiate the toxic clauses of the 2015 loan, leaving Ugandan President Yoweri Museveni’s administration in limbo.

According to the Daily Monitor, the Ugandan government waived international immunity in the agreement it signed to secure the loans, exposing Entebbe International Airport to take over without international protection.

In desperation, Uganda in March sent a delegation to Beijing hoping to renegotiate the toxic clauses of the deal but the officials came back empty-handed as China would not allow the terms of the original deal to be varied.

Last week, Uganda’s Finance Minister Matia Kasaija apologized to parliament for the “mishandling of the $207 million loan” from the China Exim Bank to expand Entebbe International Airport.

Progress of works at the airport, built in 1972, has reached 75.2 per cent, with two runways having reached overall completion of 100 per cent.

Entebbe International Airport is Uganda’s only international airport and handles over 1.9 million passengers per year. Its seizure by China would greatly dent the legacy of the 77-year-old Museveni, who came to power on the back of an armed uprising in 1986, and expose him to election defeat.

Common practice by neo-colonials. Especially loan sharks which're quite popular in China...

Make corrupt deals with corrupt African leaders.....give them huge loans they can't pay back.....and get their assets in return. A win-win for the lenders.

What's turkey's business here?

Everything. Wherever China makes a bad deal.....it gives opportunity to other global players to move in.

Turkey is one such player.

So if it is not a Chinese bank, then it'll become common bank practice? what the bank if your countries do if you borrow but don't pay back?

Now now.........we all knew this was bound to happen......


Don't even try to find any excuses for loan sharks working on a state level.

 

[Chhatrapati]

So it wasn't all just allegations.

 

[Itachi]

So it wasn't all just allegations.

Never was.

 

[Chhatrapati]

China hands out at least twice as much development money as the US and other major powers, new evidence shows.

You mean loans. US gives billions in aid money compared to you, China is one of the least charitable nations in the world.

 

[beijingwalker]

You mean loans. US gives billions in aid money compared to you, China is one of the least charitable nations in the world.

So China is the least in the world, even behind India?

Don't even try to find any excuses for loan sharks working on a state level.

If all the countries flock to go to one particular"loan shark", there must be something special about this "loan shark", isn't it?

 

[Chhatrapati]

So China is the least in the world, even behind India?

Don't know and don't care about India's position. The point is you giving loans to unviable projects are not unknown this is one such example, shady deals with corrupt politicians and bureaucrats even your BFF Pakistan is a victim of it.

 

[beijingwalker]

Don't know and don't care about India's position. The point is you giving loans to unviable projects are not unknown this is one such example, shady deals with corrupt politicians and bureaucrats even your BFF Pakistan is a victim of it.

But why they all go to China for borrowing, not India? If China's loans are that bad, it's common sense that most countries should avoid them.

 

[Chhatrapati]

But why they all go to China for borrowing, not India? If China's loans are that bad, it's common sense that most countries should avoid them.

Why do you want to talk about India? It's a non issue here. It's not a question of if Chinese loans are bad, it's a question of how bad. We have a port in Sri Lanka with 99y lease one of the emptiest Port in the region. Another airport in there also called emptiest airport.

Any international financial institutions will do a viability check before lending. But corrupt regimes a dictators are your best friends. Wonder why is that? By the time they rid of their corruption their national assets will be in Chinese control.

 

[beijingwalker]

Why do you want to talk about India? It's a non issue here.

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?

 

[Sinnerman108]

We all know Chinese deals are enticers to corrupt leadership of these countries. Chinese are like the village pawn shop who would lend money to incompetents of the family knowing fully well that they can't pay back, yet do so just to capture the family assets. Societies despise such people.

All deals are like that.
No matter how you candy wrap them.
Have your forgotten the east indian company ?

Or do you not see, how india is being prepared to fight american war.

 

[StraightEdge]

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.