>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.
_9a_ on
Isn’t that just what a loan with interest is? You pay more than you borrowed?
Semi_Accomplished on
Yup and China ain’t forgiving any of these loans anytime soon…
Juckli on
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.
OptiPath on
“Mortgage holders now send more money to bank than they receive in new mortgages”
What is the news?
Dafffy_Duck on
The debt trap has been sprung.
ElectricChocoDad on
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
marlinspike on
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.
SeniorPuddykin on
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.
omry1526 on
Reddit told me China was doing it out of the kindness of their hearts
NyriasNeo on
Of course. China wasn’t giving loans out just because they liked you.
tsu1028 on
I send more money to the bank than I received on my mortgage too
IranianLawyer on
That’s how loans work, right?
Loose_Skill6641 on
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??
mangoman94 on
China playing the slow and steady game
hannabarberaisawhore on
Welp, that didn’t take long.
scottiedagolfmachine on
I mean that’s what Chine wanted.
Economic slavery.
Inevitable_Butthole on
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
manly_trip on
Loan trap by china as always
Mean_Rule9823 on
Long game paying off
wodat234 on
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.
TehMasterer01 on
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.
22 Comments
>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.