African countries are foregoing Western investment because of the number of strings attached. Chinese loans are pretty straightforward: here’s some money, here’s a (very) competitive interest rate, and here’s how the infrastructure will be kept alive even if the country runs out of tax revenue to fund it. Critically, the project’s operation isn’t hindered by financial mismanagement and can keep delivering economic benefits to the region.
Indeed, and China also does a lot of loan forgiveness because they want to establish long term mutually beneficial relationships as opposed to just strip mine these countries the way the west does.
African countries are foregoing Western investment because of the number of strings attached
What strings?
here’s a (very) competitive interest rate
IMF loans are cheaper. Every person with two braincells will realize corrupt officials will take the chinese loans with higher interest rates because of the bribes.
A 90 year maintenance contract is nonsense and you cant defend it.
IMF and World Bank loans in years past have had strict rules regarding economic liberalization and cutting government spending.
IMF loans are cheaper. Every person with two braincells will realize corrupt officials will take the Chinese loans with higher interest rates because of the bribes.
Rescue loans are not the type of loans being used to build these railway networks lol. It’s pretty funny watching someone not understand the problem they’re talking about.
Also, the US fed rate is 5% right now… That means loaning money to the safest and most stable economy in the world pays 5% today. Even in your (misguided) context, 5% is a fucking bargain.
I like how you ignored the part in which chinese companies force the governments to sign 90+ year maintenance contracts. Convenient as it isnt part of the loan, just part of the bribery.
There is no China debt trap. That’s just concern trolling western trolls invented
African countries are foregoing Western investment because of the number of strings attached. Chinese loans are pretty straightforward: here’s some money, here’s a (very) competitive interest rate, and here’s how the infrastructure will be kept alive even if the country runs out of tax revenue to fund it. Critically, the project’s operation isn’t hindered by financial mismanagement and can keep delivering economic benefits to the region.
Indeed, and China also does a lot of loan forgiveness because they want to establish long term mutually beneficial relationships as opposed to just strip mine these countries the way the west does.
What strings?
IMF loans are cheaper. Every person with two braincells will realize corrupt officials will take the chinese loans with higher interest rates because of the bribes. A 90 year maintenance contract is nonsense and you cant defend it.
IMF and World Bank loans in years past have had strict rules regarding economic liberalization and cutting government spending.
[citation needed]
I like how you wont comment on the maintenance contracts.
So… No citation, right?
https://time.com/6266658/china-emerges-major-global-lender/#:~:text=China typically offers rescue loans,the IMF%2C the study said.
First result in Google. You cant even Google so im pretty sure you dont know what the hell you are talking about lol.
Rescue loans are not the type of loans being used to build these railway networks lol. It’s pretty funny watching someone not understand the problem they’re talking about.
Also, the US fed rate is 5% right now… That means loaning money to the safest and most stable economy in the world pays 5% today. Even in your (misguided) context, 5% is a fucking bargain.
Do you even know how IMF rescue loans work? Did you try Google buddy?
I wont even entertain your dumbass ramble about different countries because we arent talking about that.
https://www.youtube.com/watch?v=8fGcf3GODKE
I like how you ignored the part in which chinese companies force the governments to sign 90+ year maintenance contracts. Convenient as it isnt part of the loan, just part of the bribery.