India Reacted Swiftly, Calls To China Gone Unanswered: US Agency On Lanka

[VkdIndian]

The biggest devil in the world are you wicked jealousy Indians indeed.

We didn’t steal dreams of millions of Srilankans.
We aren’t about to steal the same of many more millions across the world.
And yet we are the devil?

 

[Turingsage]

What the Americans said surprised me. Japan has more debt to Sri Lanka than China and she doesn't seem to mention Japan at all, why is that? ?

All these loans are long term with TRANSPARENT Agreements available for all to see. Their interest rates are low and LONG TERM. Not only are these loan payments often rolled over OR cancelled into free aid. China loans are secretive WITH clauses that clearly STOPS the SL govt from disclosing those terms and often tied to SL strategic assets which would fall into Chinese hands upon default.

Chinese loans are nearly always with Oligarchic and CORRUPT heads of state. They never or rarely allow re-negotiation of those terms as Pakistan has discovered and other African dictators have found out. How much these, like the Rajapaksa, govts were bribed by the Chinese will never be known.

 

[etylo]

All these loans are long term with TRANSPARENT Agreements available for all to see. Their interest rates are low and LONG TERM. Not only are these loan payments often rolled over OR cancelled into free aid. China loans are secretive WITH clauses that clearly STOPS the SL govt from disclosing those terms and often tied to SL strategic assets which would fall into Chinese hands upon default.

Chinese loans are nearly always with Oligarchic and CORRUPT heads of state. They never or rarely allow re-negotiation of those terms as Pakistan has discovered and other African dictators have found out. How much these, like the Rajapaksa, govts were bribed by the Chinese will never be known.

Chinese loans have these and that problems only in you delusional jealousy Indians' minds. Now, stop pretending that you are the spoke persons of those countries that have projects with China that you know better the situations, you Indians have no right to be and you are not qualified, period. Stop spewing nonsense about Chinese projects with those countries all the time.

 

[kingQamaR]

Actually it is a little more complex then the analogy given by you.

A better example would be loan request for setting up a business. When one seeks such a loan, the bank does due diligence to see the viability of the proposal. It approves the loan only after it meets the criteria.

There is a possibility that a bank may have nefarious designs and set up such tough norms that any failure on part of the loan seeking entity may give the bank an undue advantage. And banks do such things.
Read -China here.

You are right in saying that bank has all the rights to ask for the repayment on the settled rates and plan.

That is where Chinese play comes in focus. It is a bank that is not giving loans for success of the business but to take control of those businesses. Aka - Strategically located assets across the globe.

The countries seeking loans are also at fault. That is where local corruption comes in place.
It is a complex scenario with China being the biggest devil.


Yeah. We saw that in Srilanka. Many more are about to fall inline.

There is no plan to do that.

In a free world people have the right to bring out a wrong taking place anywhere. A Chinese wouldn’t know about this. We know that Papa Xi is waiting outside your homes, ready to remove your Kidney. We understand your dilemma.

I don't think so, China isn't building Gwadar Port to take control over the country.

It's quite hard to take over a sovereign land and it's almost impossible to conquer Pakistan

What do you think, it's 18th century?

Though China has a Lion’s share in Gwadar Port and to be honest, I believe china would give a single piece of its pie to others but we here in Pakistan believe in our friendship with Chinese.

 

[Chat SAMOSA]

Just another instance of CCP loanshark behavior. Let the 'client' get desperate for funds, then swoop in with horrible terms. Till then nit give a darn about peoples' suffering. They did it to Sl and now doing it to Pakistan.

 

[etylo]

Just another instance of CCP loanshark behavior. Let the 'client' get desperate for funds, then swoop in with horrible terms. Till then nit give a darn about peoples' suffering. They did it to Sl and now doing it to Pakistan.

Stop making BS all the time you Indians. If that's the case with SL, why didn't you Indians step in to save SL with your benevolent terms then, India had the chance and was offered the chance indeed ?

 

[vishwambhar]

India has never stopped its land grapping since its existence 70 years ago. Contrary to what most people understand, India has never been a unified empire great in land mass, population, or civilization. What the British gave India was its greatest land mass by arbitrarily drew its borders based arbitrarily on British conquers or interventions into other powers' vacuum control of lands. Greedy Indians must be taught a lesson. This will come soon.

I'm talking about helping Sri Lanka through a merger for Sri Lanka's good...... India is not super rich America who can just bailout them.... through merger both can work towards paying loans by using resources available in both countries.....

Not gonna happen and not desirable either. They look down upon other south Asian countries. No amount of economic crisis is going to change that.

Economic crisis could convert Soviets into Russians..... don't underestimate Economic crisis.....

Problem won’t be being ruled or not, problem would be Tamil-Sinhala enemity, Indian Tamils hate sinhalese Sri Lankans to the core.

It's not about ruling Sri Lanka..... being a peace loving country we have always given deserved respect to merged entities..... Kashmir, Goa, Sikkim, Arunachal Pradesh and Hyderabad..... Sri Lanka merger will be like 2 countries in single union......

 

[vishwambhar]

Well if there is one silver lining to this situation and that is probably that India, Sri Lanka, BD and the smaller countries in the region will realise that in times of crisis only your neighbours will really want to help you without guaranteed payback.

Only India and BD has helped Sri Lanka when they were in grave economic difficulties. Neither China or the West lifted a finger as there was no obvious financial benefits for them to do so.

When it comes to helping hand BD has always proved to be a great neighbor.... I remember last year also BD helped Sri Lanka......

 

[baajey]

How on the earth do these arrogant Americans have the rights to be judgmental of others esp of China all the time.

how on earth u chose canada over china to leave ur beloved pakistan

 

[UKBengali]

When it comes to helping hand BD has always proved to be a great neighbor.... I remember last year also BD helped Sri Lanka......

Yes BD already provided 250 million US dollar currency swap last year and recently 2.3 million US dollars in medical supplies, and most recently also a "potato package" to low income families in Sri Lanka where children are malnourished.

Again goes to show in times of dire need your neighbours will help you more than others far away. Bit like when your house is on fire then your neighbours are the ones that rush to help you while the ones on the other side of town are not even aware you have a fire.

Anyway being honest India and BD have another reason to help our neighbours and that is we want the whole region to remain stable and become increasingly prosperous with us. You cannot really do well if your neighbours are doing badly.

 

[VkdIndian]

I don't think so, China isn't building Gwadar Port to take control over the country.

It's quite hard to take over a sovereign land and it's almost impossible to conquer Pakistan

I hope it works out for you. If Pakistan fails to service the debt then what are the clauses? I hope Pakistan has negotiated the terms well. To my understanding the terms of CPEC are not allowed to be divulged. Why such secrecy if the terms were really great?

What do you think, it's 18th century?

China has taken over Humbantota and it is now a Chinese territory for all practical purposes for 99 years. And that is an eternity.
Because Srilanka couldn’t pay back the loan.
Welcome to the reality of 21st century.

 

[vishwambhar]

Yes BD already provided 250 million US dollar currency swap last year and recently 2.3 million US dollars in medical supplies, and most recently also a "potato package" to low income families in Sri Lanka where children are malnourished.

Again goes to show in times of dire need your neighbours will help you more than others far away. Bit like when your house is on fire then your neighbours are the ones that rush to help you while the ones on the other side of town are not even aware you have a fire.

Anyway being honest India and BD have another reason to help our neighbours and that is we want the whole region to remain stable and become increasingly prosperous with us. You cannot really do well if your neighbours are doing badly.

That's really great to know especially potato package to help malnourished children..... is something like this package offered to Indian malnourished children? Can't see the pain these kids have to go through on daily basis....

 

[UKBengali]

That's really great to know especially potato package to help malnourished children..... is something like this package offered to Indian malnourished children? Can't see the pain these kids have to go through on daily basis....

Bangladesh had record production of potatoes in 2021 and it has a surplus for export.

Some of this surplus will be donated to Sri Lanka.

Small gesture from BD but will help struggling low-income families in Sri Lanka.

 

[UKBengali]

Chinese loans have these and that problems only in you delusional jealousy Indians' minds. Now, stop pretending that you are the spoke persons of those countries that have projects with China that you know better the situations, you Indians have no right to be and you are not qualified, period. Stop spewing nonsense about Chinese projects with those countries all the time.

Ok fair enough.

Are you able to give us the details of the loans that China provided to say Sri Lanka like interest rate, grace period and whether there was any collateral on them?

 

[etylo]

Ok fair enough.

Are you able to give us the details of the loans that China provided to say Sri Lanka like interest rate, grace period and whether there was any collateral on them?

"The economic crisis in Sri Lanka has nothing to do with China, Chinese loans are nonfactor in the economic crisis and Chinese loans to Sri Lanka are concessional and interest are low" indeed as stated by the Sri Lanka ambassador to China in the following interview in English near the beginning of the interview starting at 9:15 time:

凤凰卫视栏目

phtv.ifeng.com

There is a following article by the American Atlantic on the myth of Chinese debt trap esp pertaining to Sri Lanka:

The Chinese ‘Debt Trap’ Is a Myth

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

www.theatlantic.com

As for the specific interests and terms of the loans of the Sri Lanka projects by China, you can find out more from Sri Lanka gov sources I am sure. Chinese loans only comprise 10% of Sri Lanka total external debts and the West and Japan loans comprise more than 80% of Sri Lanka total debts. So, it's impossible for Chinese loans to have big if any effect on the country's economic crisis.


Quotes from a Chines article on Sri Lanka Chinese loans and interests:

我们用数据说话，斯里兰卡现在欠下的500亿美元的外债中，中国进出口银行为其修建港口提供了12亿美元资金，再加上其他方面的借款资金33.8亿美元，斯里兰卡向中国贷款的总额大约只占到其外债的10%左右，并不是一个很高的比重。

在这部分债务中，优惠贷款占到60%以上，利率2%，管理费0.5%，还款期15至20年。而斯里兰卡的外部贷款中主要还是来自国际资本市场的借贷，占比达到53%，这才是大头。

Translation:

Let’s talk with data. Among the 50 billion US dollars in foreign debt owed by Sri Lanka, the Export-Import Bank of China has provided 1.2 billion US dollars for its port construction, plus other borrowing funds of 3.38 billion US dollars, the total amount of Sri Lanka’s loans to China It only accounts for about 10% of its foreign debt, which is not a very high proportion.

In this part of the debt, preferential loans account for more than 60%, the interest rate is 2%, the management fee is 0.5%, and the repayment period is 15 to 20 years. Sri Lanka's external loans are mainly from the international capital market, accounting for 53%, which is the bulk.


You can also see the following translated article in English about interest of Chinese loans:

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www-163-com.translate.goog

Quotes from another report of interests of Chinese loans on Sri Lanka, Pakistan and Africa by dep of foreign ministry of China:


华春莹称，《华盛顿邮报》的报道中提到了斯里兰卡和巴基斯坦等国，根据斯里兰卡央行统计，2017年来自中国的贷款仅占斯里兰卡外债的10%左右，其中61.5%是低于国际市场利率的优惠贷款。中方贷款并不构成斯里兰卡外债的主要负担。斯里兰卡官员早已公开表示，汉班托塔港没有所谓“债务陷阱”问题。

华春莹指出，根据巴基斯坦政府的数据，巴42%长期债务来自多边机构贷款，中国贷款仅占10%。中国向巴基斯坦提供的优惠贷款利率约2%，远远低于西方国家向巴提供的贷款，这些数字非常能够说明问题。

Translation:

Hua Chunying said that Sri Lanka and Pakistan were mentioned in the "Washington Post" report. According to the statistics of the Central Bank of Sri Lanka, in 2017, loans from China only accounted for about 10% of Sri Lanka's foreign debt, of which 61.5% was lower than the international market interest rate. preferential loans. Chinese loans do not constitute a major burden on Sri Lanka's foreign debt. Sri Lankan officials have already publicly stated that there is no so-called "debt trap" in Hambantota port.

Hua Chunying pointed out that according to the data of the Pakistani government, 42% of Pakistan's long-term debt comes from loans from multilateral institutions, and Chinese loans only account for 10%. The preferential loan interest rate provided by China to Pakistan is about 2%, which is far lower than the loan provided by Western countries to Pakistan. These figures are very telling.


You can read the full article in the translated English version:

今日头条

www-toutiao-com.translate.goog

Quotes from another article on the Chinese Loans and Interests on Africa countries and Sri Lanka:

但是耶伦可能忽略了一点：斯里兰卡对外资源部的数据显示，其外债一共达到510亿美元。其中，斯里兰卡向国际资本市场借款占到其中的47%，向亚洲开发银行借款也占13%，向中国、日本借款各占10%；向世界银行的借款也达到了9%之多。

但无论是在斯里兰卡还是非洲，都没有充足的证据表明中国对其提供的大力经济援助为其制造了巨大的债务陷阱。从公开统计的数据来看，非洲政府的外债构成中，来自中国的借贷只占到12%，平均利率为2.7%；来自欧美国家的借贷却占到了其中的35%，平均利率更是达到5%。

Translation:

But Yellen may have missed a point: Sri Lanka's foreign debt totals $51 billion, according to data from the Ministry of External Resources. Among them, Sri Lanka borrowed 47% from the international capital market, 13% from the Asian Development Bank, 10% from China and Japan, and 9% from the World Bank.

But neither in Sri Lanka nor in Africa is there sufficient evidence that China's massive economic aid has created a huge debt trap for it. According to public statistics, among the foreign debts of African governments, loans from China only account for 12%, with an average interest rate of 2.7%; loans from European and American countries account for 35% of them, with an average interest rate of 5%.


The full translated Article in English:

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www-163-com.translate.goog

Here are two articles on the causes of the economic crisis in Sri Lanka now:

A close look into Sri Lanka's debt crisis: No 'Chinese debt traps' - Global Times

www.globaltimes.cn

Check The Facts of Sri Lanka's Debt Crisis: No Chinese Debt-Trap! - Belt & Road Institute in Sweden

Hussein Askary, Vice-Chairman of the Belt and Road Institute in Sweden June 10, 2022 As in the the case of Pakistan, which we reviewed last month, Sri Lanka’s debt crisis and financial problems have…

www.brixsweden.org

And here is another Western article on the state of Chinese loans in third world countries, debt traps of the West and the causes of Sri Lanka economic crisis:

Real debt trap: Sri Lanka owes vast majority to West, not China | MR Online

Sri Lanka owes 81% of its external debt to US and European financial institutions and Western allies Japan and India. China owns just 10%. But Washington blames imaginary “Chinese debt traps” for the nation’s crisis, as it considers a 17th IMF structural adjustment program.

mronline.org