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China bails them out .. and it will be the worst decision they ever made .. by asking China ..
Politics Pakistan Acquires 2.3Billion loan from China ..
- Thread starter colin traveller
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China bails them out .. and it will be the worst decision they ever made .. by asking China ..
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You gotta be careful what you ask for!
Many Countries at Risk of Defaulting on Debt to China
China is Africa's biggest lender, but with economies facing turmoil during the pandemic, many countries have appealed for debt relief.
www.newsweek.com
It is part of Chinese strategy. The Belt and Road.
G-7 Aims to Raise $600 Billion to Counter China's Belt and Road
Group of Seven leaders pledged to raise the sum in private and public funds over five years to finance needed infrastructure in developing countries as an alternative to China's project
www.voanews.com
Countering Chinese influence is why the new Australian government sent Penny Wong into the fray.
www.theguardian.com
"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.
abcnews.go.com
"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."
Penny Wong urges Pacific nations to weigh up ‘consequences’ of China security offers
Australia wants to show region it is a reliable partner, says foreign minister, and to make up for a ‘lost decade on climate action’
"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.
Indonesia's sinking, polluted capital is moving to new city
Jakarta is congested, polluted, prone to earthquakes and rapidly sinking into the Java 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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Climate Change in the Developing World: The Drowning of Jakarta
Often called the world’s fastest sinking city, Jakarta - Indonesia’s capital and most populated urban area - sinks 10cm deeper into the earth each year. A variety of human-induced processes created this problem, but one in particular is pushing it to the brink of disaster: global warming.
www.mironline.ca
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Isn't there a term for that?
Predatory loan or something?
Predatory loan or something?
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Also called loan sharking.
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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.
www.bbc.com
voxeu.org
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.
- 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.
China: Is it burdening poor countries with unsustainable debt?
China has become a big lender to poorer countries, and there's been criticism of its approach.
www.bbc.com
China’s overseas lending and the looming developing country debt crisis
COVID-19 is wreaking economic havoc, and its most severe consequences are likely to be felt in the developing world. Recession, depressed commodity prices, collapsing cross-border trade, and a flight to safety in financial markets have set the stage for a replay of the 1930s and 1980s debt...
voxeu.org
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Where the money is coming from - - - - -
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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.
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Exactly - work till you drop to send it to some godforsaken hole
China are loaning much smaller governments a lot of money because Chinese communism is philanthropic communism.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.
China: Is it burdening poor countries with unsustainable debt?
China has become a big lender to poorer countries, and there's been criticism of its approach.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’s overseas lending and the looming developing country debt crisis
COVID-19 is wreaking economic havoc, and its most severe consequences are likely to be felt in the developing world. Recession, depressed commodity prices, collapsing cross-border trade, and a flight to safety in financial markets have set the stage for a replay of the 1930s and 1980s debt...
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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The Bvp47 - a Top-tier Backdoor of US NSA Equation Group
Bvp47 - a Top-tier Backdoor of US NSA Equation Group
www.pangulab.cn
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