Sri Lanka seeks further $1.0b credit line from India to import essentials

[Wood]

https://twitter.com/x/status/1508654390202310657

People in social media are claiming that the power cuts have reached to 10 hours at a time now.

 

[SuvarnaTeja]

Why is it in BD section?

Bangladesh and Sri Lanka are part of Chinese string of pearls to contain India.

 

[HttpError]

However, SL has fallen to this level because of many prestige projects it undertook with the borrowed money from abroad.

A country should depend less on borrowings. It is the same as an individual. No country has ever developed by borrowing money from others. Self-help is the best.

I can foresee some other countries in our region will also face the same fate. It happened to almost all the Latin American countries. Even oil-producing Argentina is almost bankrupt.

When a country's leaders borrow, they do it for the sole purpose of stealing a part of the money. So, when it comes to repayment, the country finds no money in its coffer.

What other countries in our region do you think may suffer from this?

 

[SuvarnaTeja]

Why not INDIA write off its billions of dollars of debt ?
India accounts for 9% of SL total external debt just one 1% behind China which accounts for 10% of SL external debt.

SL got 1.1 billion USD and 30 % stake in the port leashed, SL will have to return 1.1b paid for the leash(it wasn't free) if China returned the 70% stake for which it paid 1.1b usd.

India is not part of Chinese string of pearls.

What other countries in our region do you think may suffer from this?

Borrowers never suffer. Only lenders lose money when borrowers declares bankruptcy.

 

[Valar.]

https://twitter.com/x/status/1508724440389283843

 

[Maula Jatt]

https://twitter.com/x/status/1508724440389283843

Sri lanka is a rich country and thier standard of living is much higher than anywhere in SA- doubt they'd want to be associated with Indians

 

[nang2]

India is not part of Chinese string of pearls.

Of course not. Otherwise, it wouldn't be called a string of pearls. It would be called a samosa.

 

[bluesky]

What other countries in our region do you think may suffer from this?

It is Bangladesh that will suffer with too big a foreign loan unless its exports go up by a few billion dollars, say to the level of at least $60 billion. In 2020, it borrowed $7 billion but paid back $1.93 billion.

This will keep on increasing as the loans are matured year after year. Everything will be fine if export earnings go up.

 

[bluesky]

Politicians in our region think a country becomes developed if it borrows foreign money and build a few structures.

They see all these expressways and others in the developed countries and tend to think emulating is the way to develop.

But, they do not try to find out that behind these infrastructures are the millions of industrial facilities where people create wealth. And the leaders in those developed countries use that wealth to build many infrastructures including the physical ones.

 

[bluesky]

Yes china should write off billions of dollars of debt SL owes to them and also give up their 100 year long lease on SL's Port

No, China is not to write off its debts to SL.. China is a giant with the heart of a small cockroach.

 

[Bilal9]

It is Bangladesh that will suffer with too big a foreign loan unless its exports go up by a few billion dollars, say to the level of at least $60 billion. In 2020, it borrowed $7 billion but paid back $1.93 billion.

This will keep on increasing as the loans are matured year after year. Everything will be fine if export earnings go up.

@bluesky bhai Bangladesh target for exports were set close to $45 Billion for current FY (conservative estimate). In two more years it may exceed $60 Billion.

Bangladesh’s export earnings reach $25 billion in first half of 2021/22

Bangladesh’s total exports in the first half of the fiscal year 2021/22 reached nearly $25 billion, up 28.41 per cent year-on -year,

www.bolnews.com

 

[SuperStar20]

What other countries in our region do you think may suffer from this?

I think pakistan is next.

 

[Maula Jatt]

I think pakistan is next.

Mash Allah

 

[SuperStar20]

Mash Allah
View attachment 829290

1 United States Dollar equals
184.63 Pakistani Rupee

If the current drama continues for few more weeks, PKR will be ~300.
Listen what PMIK said

 

[bluesky]

1 United States Dollar equals
184.63 Pakistani Rupee

But, industrialists in Pakistan can make also good use of this devalued Rupee. They can export cheaper than Bangladesh. However, things also depend upon the planning and actions taken by the govt bureaucracy and politicians.

Let us hope for the best in Pakistan. It should surmount the current problems.