₦airaland Forum

Last year, with more than $1 billion in debt to China, Sri Lanka handed over a port to companies owned by the Chinese government. Now Djibouti, home to the US military’s main base in Africa, looks about to cede control of another key port to a Beijing-linked company, and the US is not happy about it.

Beijing “encourages dependency using opaque contracts, predatory loan practices, and corrupt deals that mire nations in debt and undercut their sovereignty, denying them their long-term, self-sustaining growth,” said US Secretary of State Rex Tillerson on March 6. ”Chinese investment does have the potential to address Africa’s infrastructure gap, but its approach has led to mounting debt and few, if any, jobs in most countries,” he added.


Some call this “debt-trap diplomacy“: Offer the honey of cheap infrastructure loans, with the sting of default coming if smaller economies can’t generate enough free cash to pay their interest down. In Sri Lanka, acrimony remains around Hambantota and projects like “the world’s emptiest airport.”

China has characterized its “Belt and Road” initiative as a win-win for its aspirations to become a global trade leader and developing economies’ desire to fund transportation infrastructure. It has certainly filled the vacuum created by a shrinking American presence in global institutions. But as with Western internationalist projects, China is also facing accusations of imperialist behavior when its debt plans go wrong.

The Center for Global Development, a non-profit research organization, analyzed debt to China that will be incurred by nations participating in the current Belt and Road investment plan. Eight nations will find themselves vulnerable to above-average debt: Djibouti, Kyrgyzstan, Laos, the Maldives, Mongolia, Montenegro, Pakistan, and Tajikistan.


The researchers note that they did not estimate how this debt would effect growth, and that they needed to assemble much of their data from media reports. But they still say their evidence should raise concerns about economic distress stemming from debt that would undermine development efforts altogether. In the past, China has responded to the debtors inconsistently and hasn’t followed best practices adopted by international lenders working with poor countries. Sometimes, the debt has been forgiven; other times, disputed territory or control of infrastructure has been demanded as recompense.

They argue that China should work to bring other countries into their investment programs to spread debt more equally, and adopt stricter standards and more transparency about how sustainable its support for developing economies really is. Some countries aren’t waiting on China to take action: Pakistan and Nepal turned down Chinese infrastructure loans last year in favor of other sources of funding.

https://www.google.com/amp/s/qz.com/1223768/china-debt-trap-these-eight-countries-are-in-danger-of-debt-overloads-from-chinas-belt-and-road-plans/amp/

I think we need to be careful! as a nation on borrowing money from this Chinese peaple .

I was expecting Nigeria to be number 1

Our leaders don't care because they are actually borrowing the funds to steal, in the form of kickbacks and other cheap, shady underhand deals the Chinese give them to facilitate approval of these loans.

Now most of these politicians openly hold dual citizenships (no faith in the Nigerian society from where they extort extraordinary perks and privileges) and they've used the stolen cash to create safe havens for themselves & their families overseas. When China eventually moves in to take over our government and colonise us all over again it's going to be brutal for the common man in the streets. China has been running their own police force in South Africa for close to a year now.

When these things happen, the people who sold Nigeria into 2nd slavery will simply flee into economic/political exile. Same thing Mugabe did to his people in Zimbabwe.

China with their Greek gifts its like taking loan from a casket maker

#Westernpropaganda. Chinese loans are very good, the problem is that they offer you the luxury of spending it anyhow thus corruption while IMF and Worldbank give conditions for loans to be used although those conditions in some cases can have an adverse effect on the economy of those borrowing ....if Chinese loans are that bad, then why does the US keep borrowing from China, in fact China is their largest creditor....what you do with Chinese loans totally depends on the country.....Ethiopia takes loan from China and it is the fastest growing economy in the world, Djibouti takes from China and it is choking the nation.

Need an Article with 0%plagrism? Holla now @ 0816-755-1283.

China knows most African countries are corrupt. So they give you loans in the hope that you spend it stupidly after which they seize your strategic assets.
It is part of their plan for world domination.

Borrow borrow

This is exactly what I'm saying to my boss last two years that China occupation in Africa is like another imperialism. China will not give out without return in two fold. Nigeria borrowing money from China sadly they will not use the money judiciously.

ValCon888:
China knows most African countries are corrupt. So they give you loans in the hope that you spend it stupidly after which they seize your strategic assets.
It is part of their plan for world domination.

China don't give out cash as loan, they build what ever you want, then you pay them in future, if you can't pay, they will seize that project, control it for numbers of years depending the agreement with them, they will recover their money and even gain from the project.
China doesn't give out money like the West.
But African leaders can make a lot of money from the Chinese project, just like former Malaysian president did, The new Malaysian president came and renegotiated the Chinese deals with Malaysia and was able cut out over $ 20 billion for Malaysia.

Loans are good if properly utilised. The problem is when it gets squandered.

Upworkwriter007:
#Westernpropaganda. Chinese loans are very good, the problem is that they offer you the luxury of spending it anyhow thus corruption while IMF and Worldbank give conditions for loans to be used although those conditions in some cases can have an adverse effect on the economy of those borrowing ....if Chinese loans are that bad, then why does the US keep borrowing from China, in fact China is their largest creditor....what you do with Chinese loans totally depends on the country.....Ethiopia takes loan from China and it is the fastest growing economy in the world, Djibouti takes from China and it is choking the nation.

Need an Article with 0%plagrism? Holla now @ 0816-755-1283.

Stop misleading people, China loans are not good, their loans are like gift from the devil, they give out loans to Africa nation knowing fully well that our leaders will loot it, but they don’t care because they collateral they usually ask for are worth 100 times the loan amount.

Let’s use Zambia as a case study, Chinese government took over Zambian National Broadcasting Corp (ZNBC); and in September Africa Confidential reported that the government was in talks with a Chinese company to take over the power utility, Zesco, to offset debt.

The best west offers debt relief, In October 2005, Nigeria and the Paris Club announced a final agreement for debt relief worth $18 billion and an overall reduction of Nigeria's debt stock by $30 billion

Ghana needs to be extra carefull


with atleast 42 billion barrels of proving crude oil reserve, Nigeria got no problem


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China behaving like IMF..

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solmusdesigns:



Ghana needs to be extra carefull


with atleast 42 billion barrels of proving crude oil reserve, Nigeria got no problem


..

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AroleOduduwa2:
Stop misleading people, China loans are not good, their loans are like gift from the devil, they give out loans to Africa nation knowing fully well that our leaders will loot it, but they don’t care because they collateral they usually ask for are worth 100 times the loan amount.

Let’s use Zambia as a case study, Chinese government took over Zambian National Broadcasting Corp (ZNBC); and in September Africa Confidential reported that the government was in talks with a Chinese company to take over the power utility, Zesco, to offset debt.

The best west offers debt relief, In October 2005, Nigeria and the Paris Club announced a final agreement for debt relief worth $18 billion and an overall reduction of Nigeria's debt stock by $30 billion

I don't get u, ain't we saying the same thing? How im I misleading pple, they give as much as you want as loans, Nations have done great things with Chinese loans, nations have also been doomed for taking Chinese loans. Facts not emotions please, so it is the the responsibility of China to ensure that you use the loan well, but not that of the country?......The thing abt Chinese loans is that they'll always get there money back, that's there modus operandi. I gave an example of a country where Chinese loan worked, and another example of where it didn't .