The International Monetary Fund (IMF) has warned Nigeria and other emerging market countries taking excessive loans from China to consider the terms of such facilities, especially, their compliance with the Paris Club arrangements.

Speaking on Wednesday at the ongoing IMF/World Bank Spring Meetings in United States of America, Director, IMF Monetary and Capital Markets Department, Tobias Andrian, said that there was nothing bad in borrowing from China, except that the terms of such loans are always questionable.

He said: “Loans from China are good, but the countries should consider the terms of the loans. And we urge countries that when they borrow from abroad, the terms are favorable for the borrower, and should be conforming to the Paris Club arrangements”.

Continuing, Andrian, who spoke on the Global Financial Stability Report (GFSR) said: “Let me reiterate that in many frontier markets, we see that the share of debt that is not conforming to the Paris Club standards is on the rise. And that means that if there is any debt restructuring down the road one day, that can be very unfavorable to those countries. So, the borrowing terms, the covenants, are extremely important. And we do see a deterioration in that aspect.”

Read also: https://thenationonlineng.net/imf-cautions-nigeria-against-borrowing-from-china/

I heard if a country is not able to pay back the Chinese government, they come for your resources and other amenities as stipulated in the loan.

I hope it's just a faux.