A dozen poor countries are facing economic instability and even collapse under the weight of hundreds of billions of dollars in foreign loans, much of them from the world’s biggest and most unforgiving government lender, China. An Associated Press analysis of a dozen countries most indebted to China — including Pakistan, Kenya, Zambia, Laos and Mongolia — found paying back that debt is consuming an ever-greater amount of the tax revenue needed to keep schools open, provide electricity and pay for food and fuel. And it’s draining foreign currency reserves these countries use to pay interest on those loans, leaving some with just months before that money is gone. Behind the scenes is China’s reluctance to forgive debt and its extreme secrecy about how much money it has loaned and on what terms, which has kept other major lenders from stepping in to help. On top of that is the recent discovery that borrowers have been required to put cash in hidden escrow accounts that push China to the front of the line of creditors to be paid. Countries in AP’s analysis had as much as 50% of their foreign loans from China and most were devoting more than a third of government revenue to paying off foreign debt. Two of them, Zambia and Sri Lanka, have already gone into default, unable to make even interest payments on loans financing the construction of ports, mines and power plants. In Pakistan, millions of textile workers have been laid off because the country has too much foreign debt and can’t afford to keep the electricity on and machines running

FULL STORY: ↪ https://fortune.com/2023/ .. c-instability/

A good read. I remember everyone talking about how China is helping African nations by building infrastructure etc. Somebody get Along on the phone I wanna hear what he has to say.


In short: China is unforgiving on their loans to other countries, and their loans are marked with NDA agreements which causes other countries refusing to loan more money as they aren't allowed to know the details of the loan with China. These poor countries can't afford the interest rate and have been laying off workers country wide, or not paying government employees so they can pay off their debt/ causing more poverty.

Loan sharks of the world

Someone on here said just wait until they pull the rug & watch the places collapse…

So what happens if/when they say no?

30acreK said 🔗 Someone on here said just wait until they pull the rug & watch the places collapse…

I believe I remember a conversation of having to give up land and resources to China as an eventually pay back for the loan which I can definitely see happening.

Jad95 said 🔗 So what happens if/when they say no?

By November 2020, with little reserves left, Zambia stopped paying the interest and defaulted, locking it out of future borrowing and setting off a vicious cycle of spending cuts and deepening poverty. Inflation in Zambia has since soared 50%, unemployment has hit a 17-year high and the nation’s currency, the kwacha, has lost 30% of its value in just seven months. A United Nations estimate of Zambians not getting enough food has nearly tripled so far this year, to 3.5 million.

Most recent example.

Why should debt be forgiven? Countries who are dumb, including America, need to realize that "debt forgiveness" is the same as 0 accountability. China should pull all their loans and own the world.

Jad95 said 🔗 So what happens if/when they say no?

They get control of the ports if I remember correctly.

↪🔗

dredman said 🔗 Why should debt be forgiven? Countries who are dumb, including America, need to realize that "debt forgiveness" is the same as 0 accountability. China should pull all their loans and own the world.

Are you Chinese? Doesn't really matter because if they called in US debt you'd be speaking Chinese anyway according to your logic.

dredman said 🔗 Why should debt be forgiven? Countries who are dumb, including America, need to realize that "debt forgiveness" is the same as 0 accountability. China should pull all their loans and own the world.

Well basically this was their plan in the first place. African countries are used to borrowing money and being able to borrow more from other countries to repay interest. These NDA agreements in the Chinese loans are preventing that.

China knew this and took advantage. It's just another way to own African countries and prevent them from prospering.

Banks36 said 🔗 Well basically this was their plan in the first place. African countries are used to borrowing money and being able to borrow more from other countries to repay interest. These NDA agreements in the Chinese loans are preventing that. China knew this and took advantage. It's just another way to own African countries and prevent them from prospering.

How is it 'taking advantage' if the country willingly goes into a loan? Same thing with this student loan debt relief. It's not like a school put a gun to the student's head and told them to sign a loan. What about millions of people who didn't go into student loan debt and didn't go into higher education? Should they get some free money when the govt forgives these loans?

American propaganda at its best

Same sh1t as IMF

6.Yrs said 🔗 They get control of the ports if I remember correctly. ↪🔗

Banks36 said 🔗 Most recent example. By November 2020, with little reserves left, Zambia stopped paying the interest and defaulted, locking it out of future borrowing and setting off a vicious cycle of spending cuts and deepening poverty. Inflation in Zambia has since soared 50%, unemployment has hit a 17-year high and the nation’s currency, the kwacha, has lost 30% of its value in just seven months. A United Nations estimate of Zambians not getting enough food has nearly tripled so far this year, to 3.5 million.

please Africa, tell us more about how the brics is better than the west…just stand on your own, and kick everybody the hell out.

ah yes... the great one belt one road plan.

Jad95 said 🔗 So what happens if/when they say no?

Pakchoy said 🔗 Same sh1t as IMF

d.c. supreme said 🔗 ah yes... the great one belt one road plan.

The belts really is a noose. Loan-to-own, the oldest strategy in the diplomacy book.

↪🔗

dredman said 🔗 How is it 'taking advantage' if the country willingly goes into a loan? Same thing with this student loan debt relief. It's not like a school put a gun to the student's head and told them to sign a loan. What about millions of people who didn't go into student loan debt and didn't go into higher education? Should they get some free money when the govt forgives these loans?

The same way Russia is getting Sudanese gold is the same way China is getting these African countries to take on these loans.

You think an African leader is going to care about the implications of approving the loan when they're going to skim tens of millions of dollars and then dip to Europe when it gets tough?

Them african leaders was never planning on paying back and more than willing to give the Chinese access to whatever they want.

Sad reality

The land not the only thing they trying to steal

🔗

🔗

If giving everything means more losses, what good is that?

Bite the bullet, and gather as many more bullets as you can find

1. Who saw this coming? This was predicted years ago and their entire strategy and will make them stronger

2. "This" is exactly why people need to get out of their bubble. You think they'll stop there? They barley been in power at this level long and look what they're doing. You don't think if they feel they're capable of taking us in a war they won't make a move and put the whole world into some slavery sh1t

And "maybe" they wouldn't but even a 1% chance is enough to make a move before they get too big where wete unable to respond if we need to

What if they trying to take these ports for strategic military position

I can see China and Russia using this as an opportunity to tap into the young male resource of these countries for their personal military gain.

It’s about war time.

And that’s the danger of being in debt in a foreign currency.

Jad95 said 🔗 So what happens if/when they say no?