Politics Pakistan Acquires 2.3Billion loan from China ..

colin traveller

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China bails them out .. and it will be the worst decision they ever made .. by asking China ..
 

It is part of Chinese strategy. The Belt and Road.

 
Countering Chinese influence is why the new Australian government sent Penny Wong into the fray.



"In her first trip to the Pacific since being sworn in as foreign affairs minister, Wong also said Australia under past governments had “neglected its responsibility to act on climate change”

The issue of climate change is actually really important to pacific nations.


They are sinking into the sea.


"It has been described as the world’s most rapidly sinking city, and at the current rate, it is estimated that one-third of the city could be submerged by 2050. The main cause is uncontrolled ground water extraction, but it has been exacerbated by the rising Java Sea due to climate change."
 
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Isn't there a term for that?

Predatory loan or something?
 
There is actually no evidence of the so called "Debt Trap" by China. The main difference with Chinese loans are:
- Easier to access
- Higher interest rate
- Cross contract loans
- Contracts that ensure China can get its money back faster

China has never seized an asset or infra for debtors that couldnt pay and have actually written off a lot of the debts without much funfare.

The main issue is the fact that they release loans so easily, so a corrupt government get access to the money but manages the loan poorly.
If you have a decent finance ministry the Chinese loans are no better or worse than what others offer. Even the former ministry of Finance when interviewed mentioned the Chinese loan offer and avice out of its debt was better but was pressured by the EU to loan more from EU countries and ignore China.

Someone will mention Sri Lanka, so Im just going to say if you look at what happened its more to do with Sri Lankan governments being idiots. Think of China as a drug dealer, he wont stick the needle in your vains, but he would gladly sell you your death if you are a junkie.
 
Perhaps it is time to cut the UK's 'aid' to zero
The whole foreign aid thing is a mess and ripe for fraud. We typically give ~1 billion in foreign aid each year. There are various charities collecting huge sums as well. On top of this we apparently give 5.9 billion to NGO each year. And next year we'll give 3 billion to Ukraine.
Bad times for Paddy soon methinks. Anyway, 2.3 billion is peanuts in today's fantasy world where retirement age disappears into the sunset.
 
The whole foreign aid thing is a mess and ripe for fraud. We typically give ~1 billion in foreign aid each year. There are various charities collecting huge sums as well. On top of this we apparently give 5.9 billion to NGO each year. And next year we'll give 3 billion to Ukraine.
Bad times for Paddy soon methinks. Anyway, 2.3 billion is peanuts in today's fantasy world where retirement age disappears into the sunset.
Exactly - work till you drop to send it to some godforsaken hole
 
There is actually no evidence of the so called "Debt Trap" by China. The main difference with Chinese loans are:
- Easier to access
- Higher interest rate
- Cross contract loans
- Contracts that ensure China can get its money back faster

China has never seized an asset or infra for debtors that couldnt pay and have actually written off a lot of the debts without much funfare.

The main issue is the fact that they release loans so easily, so a corrupt government get access to the money but manages the loan poorly.
If you have a decent finance ministry the Chinese loans are no better or worse than what others offer. Even the former ministry of Finance when interviewed mentioned the Chinese loan offer and avice out of its debt was better but was pressured by the EU to loan more from EU countries and ignore China.

Someone will mention Sri Lanka, so Im just going to say if you look at what happened its more to do with Sri Lankan governments being idiots. Think of China as a drug dealer, he wont stick the needle in your vains, but he would gladly sell you your death if you are a junkie.
China are loaning much smaller governments a lot of money because Chinese communism is philanthropic communism.

Seriously though. I think the Chinese are targeting certain countries in the Asia pacific with predatory loans. With the expectation that those countries will default and China can gain leverage.

In the west banks use sophisticated ML algorithms to determine who they can make the most money off*. The Chinese approach is no different. Just more strategic.

*they know what your income and spending habits are. So. Give you another credit card knowing you will max it and then pay the monthly minimum. While they keep charging you interest.
 
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