Dalac Bilaash
☠ Emperor of The Horn ☠
Ghana being the Highest indebted country has also Filed For Complete Bankruptcy
Glad we have survived Chinese debt trap
- Thread starter Dalac Bilaash
- Start date
Dalac Bilaash
☠ Emperor of The Horn ☠
İt's not a myth Ghana filed for Bankruptcy
Emir of Zayla
𝕹𝖆𝖙𝖎𝖔𝖓 𝖔𝖋 𝕻𝖔𝖊𝖙𝖘
What happens when a country files for bankruptcy?
Dalac Bilaash
☠ Emperor of The Horn ☠
economy may experience a significant downturn, marked by high inflation, unemployment, and a decline in economic output.
The national currency may lose value, leading to a depreciation. This can contribute to higher inflation and negatively impact the purchasing power of citizens İt will also affect international financial markets and investor confidence. It may lead to a loss of credibility for the country in the eyes of foreign investors, making it harder for the country to borrow in the future.
You left out the part where China seizes the collateral which is often the infrastructure project they just built or mineral rights
4D chess
The IMF and creditor countries get involved in "debt reconstruction". They basically sit you down as a country and negotiate terms to pay back the debts. A common route they take is privatizing government sectors such as health, energy and transport to reduce government spending so that money could be used to pay back the loan.
Zimbabwe has been going through this recently
It is easier to blame China than to look at the complete mismanagement of infrastructure funds and projects by local state actors.
Nigeria blundered a huge project recently, the Abuja light rail, after being loaned 600 + million dollars. Nearly the entire thing is built, they have the trains, tracks and stations but it has been abandoned. The Nigerian taxpayer will have to pay increased taxes in the coming years for a project that hasn't even benefited them. All over Africa, you'll see similar situations
Let's hope the Somali government doesn't get any large loans in the coming years. We know it won't end too well
Nigeria blundered a huge project recently, the Abuja light rail, after being loaned 600 + million dollars. Nearly the entire thing is built, they have the trains, tracks and stations but it has been abandoned. The Nigerian taxpayer will have to pay increased taxes in the coming years for a project that hasn't even benefited them. All over Africa, you'll see similar situations
Let's hope the Somali government doesn't get any large loans in the coming years. We know it won't end too well
Ghana entered into a sovereign default on US$60bn on both domestic and external debt at the end of 2022 and sought a treatment under the Common Framework soon after on US$5.4bn of official external debt. Of this, only US$1.9bn is owed to China.16 Oct 2023
China and Africa's long road to debt recovery
China is playing hardball in debt‑restructuring…
Ghana entered into a sovereign default on US$60bn on both domestic and external debt at the end of 2022 and sought a treatment under the Common Framework soon after on US$5.4bn of official external debt. Of this, only US$1.9bn is owed to China.16 Oct 2023
China and Africa's long road to debt recovery
China is playing hardball in debt‑restructuring…www.eiu.com
Yeah was wondering when someone was going to mention this, pretty sure everyone was blaming the same thing on Sri-Lanka, come to find out the US and even Japan was owed more debt by the Shrilankan government.
That's what happens when you take out a loan. You offer collateral. E.g your house on an individual level.
Inquisitive_
VIP
They pay a premium for those loans without any hardball negotiations, usually 2-10x price.
90% of the money goes back to their own cooperation and professionals, 10% is bribes to corrupt officials and politicians, and less then 0.5% goes to the local cleaners and caterers (real economy).
They collect additional money for maintenance since the locals don't have the skills to repair/maintain, that alone eats up any paltry revenue the project generates and there is no provision in the contract to train them.
You cannot survive this without defaulting especially with the compounding interest rates on top the loan, and when that inevitability comes the collatoral is your critical asset that actually generates revenue for the country.
It's a slow painful death by a thousand cuts, but African politician's don't care, they would sell everything for just a stack of $$$
90% of the money goes back to their own cooperation and professionals, 10% is bribes to corrupt officials and politicians, and less then 0.5% goes to the local cleaners and caterers (real economy).
They collect additional money for maintenance since the locals don't have the skills to repair/maintain, that alone eats up any paltry revenue the project generates and there is no provision in the contract to train them.
You cannot survive this without defaulting especially with the compounding interest rates on top the loan, and when that inevitability comes the collatoral is your critical asset that actually generates revenue for the country.
It's a slow painful death by a thousand cuts, but African politician's don't care, they would sell everything for just a stack of $$$
Somalia is walking on eggshells right now we better be careful.
Hotchick12
VIP
Lol China loans are the most less interest free loans, Ghana owns more debt from western world
Hotchick12
VIP
We actually need to go to China for loans they are most interest free as well as actually building the infrastructure instead of squandering like the imf
Building infrastructure should also benefit locals, the way these infrastructure deals are set up, they use companies within China and the materials they use are often subpar.
Africa is sovereign in name only, the whole endeavour or enterprise is wholly owned by Western powers both politically and militarily. The debt trap that is being associated with the Chinese is actually Western, they own most of the debt. It is designed so that you can't be able to pay it back and then terns for renegotiation are set in a way that you have to sell all your state assets through privatisation when they end up being the buyers and really on the cheap where your assets are way much devalued. And then you have complete recolonialisation through the back door. And mind you when this loans are given they turn a completely blind eye to your corrupt misuse of the funds wanting you to digg deep your own holes. When they completely take over the assets of Africa is when you shall see yourselves corrupt free. And then you shall join the so called free world. Decent lifestyle but sovereign in name.
Trending
-
Somali Dad Stands Up for Autistic Child After White Woman Hurls Slurs in Rochester, MN
- Started by EainA2
- Replies: 177
-
-
