Just40:
your minister has already done the comparison for you.

Paying 4 billion dollars for just 480km SGR is just insane ... Now you want China to give you another money so you can extend it from Nairobi to naivasha and they are saying no because you've already defaulted on the 4 billion dollars.

Shma2022:

No, it's a high-voltage strategic decision. We don't want to fall into economic quagmire like ghana. We can pay SGR debt easily, [b]but re-structuring debt payment period to a longer time, will make it more easier and less training to service it. [/b]Since we will now have to focus on other profit-accruing projects.

Just40:
no one is envious that you paid 4 billion for 480km SGR

How do you call a loss making business successful?

Just40:
Private property cannot be collateralized crazy kid.

Desperate as usual.... The Bui dam project was a profitable businesses and it finished paying it debt in 4 to 5 years to the Chinese.... In 2 years of operation, the Chinese engineers were kicked out and replaced because half payment had already been made.

Compare that to your SGR were you paid 20 billion shillings into Escrow and still managed to sign unto clauses that says your KPA can be seize should you default on any debt obligation

Worse of all, you knew that your SGR will never be profitable to be able to pay that loan

obaaderemi:
I was wondering too

obaaderemi:
The minister who had more information than this boy already rubbished the sgr deal. Why are you still having a back and forth with this one that knows only what he reads on nairaland?

gallivant:


I was also wondering if the terrorists have allowed Nigerian train operations to resume. Just wondering...

Shma2022:

Go and lie to fools. International monetary fund and WB are both projecting your debt to GDP at 100+% by the start of next year.

You're currently doing a whopping 78% with nothing to show.
https://theconversation.com/ghana-and-the-imf-debt-restructuring-must-go-hand-in-hand-with-managing-finances-better-191877

obaaderemi:
Nigeria's foreign debt ----- $40bn

Kenya's foreign debt------- $36bn

Kenya is on the brink.

obaaderemi:
The minister who had more information than this boy already rubbished the sgr deal. Why are you still having a back and forth with this one that knows only what he reads on nairaland?

GeneralDae:

36 Billion dollars?? African countries need to learn. You can't go on a borrowing spree like Egypt who have those Arab nations to support them in times of crises.
If you want to borrow, first borrow to build projects that would pay for your infrastructure.

Just40:
I even wonder why I'm replying him on this matter

GeneralDae:

Lol, Nigerian trains (Warri to Itakpe) and (Lagos to Ibadan) have been running. Abuja to Kaduna resumes again soon.
Warri to Itakpe would extend to Abuja (work to begin), others on course across the country except Lagos to Calabar which has been halted for now.

Just40:
I even wonder why I'm replying him on this matter

obaaderemi:
Abi. An insider already spoke. This one you are replying will keep twisting you around with projections and lies.

gallivant:


Right, you should be plotting your escape to Europe on a dingy like every other young able-bodied Ghanaian with ambitions in the future.

gallivant:


Right, you should be plotting your escape to Europe on a dingy like every other young able-bodied Ghanaian with ambitions in the future.

vankelvin:

Why would you want to extend your debt payment? It's because you are highly indebted, broke and cannot pay as per the original contract stipulates

GeneralDae:

36 Billion dollars?? African countries need to learn. You can't go on a borrowing spree like Egypt who have those Arab nations to support them in times of crises.
If you want to borrow, first borrow to build projects that would pay for your infrastructure.

rvp20182:
Debt management is a lot of things. Where you borrow, the interest rates, the maturity.
Kenya has one of Africa best debt management - despite our debt rising lately.
For example - compare kenya, nigeria and ghana external debt.
See where each borrowed from, for how much, and for how long - and who has pressure.

The pressure shows up in macro-economics indicators like currency, inflation, interest rates.

GeneralDae:

If this is true then why do you rank so high in terms of debt unsustainability even in Africa?

rvp20182:
Debt management is a lot of things. Where you borrow, the interest rates, the maturity.
Kenya has one of Africa best debt management - despite our debt rising lately.
For example - compare kenya, nigeria and ghana external debt.
See where each borrowed from, for how much, and for how long - and who has pressure.

The pressure shows up in macro-economic indicators like currency, inflation, interest rates. Ghana is literally bursting the seams - and Akosombo is about rapture. Nigeria is not far. Kenya is very stable.

Ghana and Nigeria - most of their external debt is commercial - and as you know (if you do) - govs are not designed to be profitable.

They only become profitable when they grow taxes or revenues. Kenya is doing well there. Ghana and Nigeria are not.

Majority of kenya debt are concessional loans from adb,imf, worldbank, japan, france and china. Those ones can forgive you like they did Nigeria in 2005 - what was that 35B dollars written off. Their debt is more AID.

Now where problems start - Zambia and Ghana - you take eurobonds - and you soon die.

GeneralDae:

Nigeria actually paid off about 12 Billion dollars then. Not all of the debts were forgiven and it wasn't just Nigeria then. Most African countries and many countries around the world had their debts forgiven. Nigeria also parted with over 12 Billion dollars in addition for the about 30 Billion dollars debt.

rvp20182:
Commercial loans are hard to forgive. But if you borrow from bilateral and multilateral creditors - then apply right political pressure - they can cancel or extend.

For example world should have made china take some covid blame - and refuse to pay the loans until covid recovery. Kenya tried - got six months - but other countries refused to press china.

Avoid commercial loans from syndicated banks or eurobond if you can.

Africa economies right now are getting raptured by covid & ukraine war - none of it their making - and this time to call for another debt cancellation/restructuring - but if you borrowed from a commercial bank - they dont do that business - because it's depositor money. If you borrowed from say French gov - you're borrowing their taxes - nobody gives a damn.

obaaderemi:
Stop saying things you know nothing about.
Kenya just went begging before commercial banks for loans.
You scrapped your eurobond idea after you saw Nigeria do same. There's nothing to learn from a Kenyan when it comes to debt management.

rvp20182:
Debt management is a lot of things. Where you borrow, the interest rates, the maturity.
Kenya has one of Africa best debt management - despite our debt rising lately.
For example - compare kenya, nigeria and ghana external debt.
See where each borrowed from, for how much, and for how long - and who has pressure.

The pressure shows up in macro-economic indicators like currency, inflation, interest rates. Ghana is literally bursting the seams - and Akosombo is about rapture. Nigeria is not far. Kenya is very stable.

Ghana and Nigeria - most of their external debt is commercial - and as you know (if you do) - govs are not designed to be profitable.

They only become profitable when they grow taxes or revenues. Kenya is doing well there. Ghana and Nigeria are not.

Majority of kenya debt are concessional loans from adb,imf, worldbank, japan, france and china. Those ones can forgive you like they did Nigeria in 2005 - what was that 35B dollars written off. Their debt is more AID.

Now where problems start - Zambia and Ghana - you take eurobonds - and you soon die.

Just40:
Desperate as always

You keep forgetting that Ghana is not in a debt crisis which is what Kenya is in because Ghana only spend 30% of revenue on debt servicing.

Kenya is spending a whopping 76% of revenue on debt servicing which is the reason why you are currently unable to pay your Chinese debt.

rvp20182:
What do you know about kenya debt? I have read very pathetic report from your DMO about Nigeria debt. You should try read about Nigeria first before you read about Kenya.

Obaboon improve yourself - dont just heckle for the sake. Fact is your debt servicing ratio already exceeded revenues long time ago

Start here -> https://www.dmo.gov.ng/

obaaderemi:
Whenever you throw a tantrum I know you are hurting badly. Your government not only took eurobond but also went to a consortium of commercial banks for a loan.
I've been watching you make a monkey of yourself talking about other people taking eurobond and commercial banks' loans as if your hellhole doesn't do same.
Well, I don't blame you. You hardly know anything about what's going on in Kenya until we tell you here.

rvp20182:
Ghana the land of the golden stool worth 76 billion
copied..
one of the most outrageous bonds out there must be the $1bn lent to Ghana in 2015 at 10.75% interest with a $400m guarantee from the World Bank.A buyer of the bond in 2015 is already guaranteed to get $1.15bn. And they are still 'owed' $1bn, and $860m of interest payments