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34 Kommentare
>China’s role as a leading financier to developing nations has shifted over the past decade, with new loans to poorer countries falling sharply while debt repayments continue to rise, according to analysis released by ONE Data
Duh! That’s how loans can hamper development of what is been spent upon doesn’t produce revenue in excess of the loan.
Isn’t that just what a loan with interest is? You pay more than you borrowed?
Yup and China ain’t forgiving any of these loans anytime soon…
This was China’s plan all along! It’s part of their asymmetrical warfare tactics. They want the loans to be hardly payable so that they can offer the strugglin nations to pay the loans by giving China parts of their crucial infrastructure or harbours that are geopolitically relevant.
“Mortgage holders now send more money to bank than they receive in new mortgages”
What is the news?
The debt trap has been sprung.
That has to be both the dumbest and most disingenuous headline I’ve seen…that’s how loans fucking work! If they didn’t have interest in principle no one would give out loans
Africa has some of the fastest growing economies of the world today. I don’t think we should see them as the nations they used to be in 1980s, but the ones that are aspiring to build robust infrastructure and economies. It’s totally normal for them to be taking loans and paying them back, and they’re doing so now with fast growing economies, which is something they didn’t have 50 years ago.
This is not all bad news. It’s more mature nations taking and paying loans. Now they have growth to show for it. Good for them.
The only nation willing to build in Africa (for selfish or noble reasons) and we all shit on them for “debt trapping”. The alternative would’ve been the status quo, dead poor without any infrastructure.
I’m not concluding it to be good or bad but to do nothing to help and then criticize anybody who does anything is some first world bs by us.
Reddit told me China was doing it out of the kindness of their hearts
Of course. China wasn’t giving loans out just because they liked you.
I send more money to the bank than I received on my mortgage too
That’s how loans work, right?
that’s usually how loans work, you pay more than you borrow
what it does mean is that the honey moon is over and China isnt handing out money so easy anymore, they were very happy until they realised they won’t be paid for much of the debt
its just a revolving credit door for these guys : first they borrow money from the US, then they can’t pay so they ask Russia for money, then they can’t pay ao they ask China for money, now they can’t pay, who will be next to foolishly give them money? India??
China playing the slow and steady game
Welp, that didn’t take long.
I mean that’s what Chine wanted.
Economic slavery.
Everyone’s saying duh
But there was no certainty that they’d be able to pay it back. It means china is helping African nations to become more succesful and therefore ability to pay
Loan trap by china as always
Long game paying off
Africa is sending more money to China than it is receiving. This is just the debt trap consequences.
The West have been warning the Africans about the Chinese debt trap for years, but African governments were either too corrupt or too stupid to understand. Now this is the consequence.
Reading through these comments, people don’t understand that this isn’t just African countries going out and getting a normal loan.
This is chinas belt and road initiative. They make offers that poor countries can’t refuse (they desperately need infrastructure), and the loan terms are impossible by design.
It’s predatory on Chinas part. They will own these airports, rail terminals, and ports when the loans inevitably default.
Well makes sense, Chinese loans to Africa have been less in recent years too and nothing close to those of less than a decade ago, so it makes 100% sense that more money now goes to China than the other way around.
It’s also good news that African nations are able to pay the loans, were many doubters had expected that by now Africans would be paying with literal territory and free raw materials.
What?!?! You mean all of those predatory loans were …. PREDATORY!!!
That’s not true, China is benevolent in their desire to help Africa. They would never charge loans that countries could not realistically pay back. Never /s
The vig is a killer
africa sends more money to the us than it receives in loans and infrastructure deals lol
I guess the point it may’ve been trying to convey is that it is a positive that Africa is now generating the capital needed to repay the loans.
Of course, whether the capital is positively generated or not is another story, if its not because of booming economies but getting unsustainably extracted (perhaps via resources) to repay the loans as there is no other choice, then its probably not good.
dude – other than the first year, i’ve been sending more money to the bank than i’ve received from them for my mortgage!
This is an inflection point. They are producing more than they need to borrow to get their economic output going. Everybody saying “yeah duh that’s how loans work” is missing the entire point.
China lends badly to Africa, while Europe and the United States lend to Africa well 👍
Reuters discovers how lending works.
That always was the objective. „Ther ain’t no free lunch.“
Nobody really wants balanced trade. Inflows of surpluses are desired.
That was the plan!
The sad, true destination of Belt-and-Road.