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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Report: Paving the Silk Road passes through pumping more Chinese loans to transit countries

    Rocky
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    • Post n°1

    Report: Paving the Silk Road passes through pumping more Chinese loans to transit countries Empty Report: Paving the Silk Road passes through pumping more Chinese loans to transit countries

    Post by Rocky Wed 29 Mar 2023, 7:51 am

    Report: Paving the Silk Road passes through pumping more Chinese loans to transit countries

    [ltr]2023.03.29 - 15:36[/ltr]


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    Baghdad - people  
    Over the past 20 years, China has provided $240 billion in bailout loans to 22 developing countries at risk of default, a number that has risen in recent years, according to a report published Tuesday.  
      
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    This comes at a time when some countries have begun resorting to Chinese financing, despite its risks, to confront the International Monetary Fund's strictness in its conditions for imposing economic reforms that put countries benefiting from loans in an embarrassment to their people.  
      
    Nearly Chinese billions went to countries that make up part of the new Silk Roads, particularly Sri Lanka, Pakistan and Turkey.  
      
    Launched by Beijing at the push of President Xi Jinping, this ambitious project aims to improve trade relations between Asia, Europe, Africa and even beyond by building ports, railways, airports and industrial parks.  
      
    These infrastructures are supposed to allow the Asian giant to reach more markets and open new outlets for its companies.  
      
    This project, which has been joined by more than 150 countries, according to Beijing, is facing criticism at the international level because of the dangerous indebtedness it poses to poor countries.  
      
    It seemed that China, which has strengthened its relations economically in Asia and Africa, wants to invest this in playing a political role by presenting its mediation between Saudi Arabia and Iran and its success in securing an agreement between them. It is also expected that China will seek to extend its mediation between Riyadh and Tehran to include influence on the situation in Yemen to secure the Maritime Silk Road.  
      
    And China's desire to secure the Maritime Silk Road will push it to become more involved in the problems of the region, and what will help it to solve the crises in the Middle East is that it has become the first trading partner for most countries in the region.  
      
    Beijing is working to make its mediation in the Ukraine war a success at a time when it was met with severe Western criticism for being unable to be a mediator while it is biased towards Russia, which shows the Western unwillingness to accept the emergency Chinese political role.  
      
    On Tuesday, the Chinese government rejected the criticism of this project, accusing “some people” of “making up a fuss about the so-called ‘debt trap’ and mysterious Chinese loans and distorting China’s image, which we completely reject.”  
      
    Chinese Foreign Ministry spokeswoman Mao Ning confirmed in a press statement that "China has never forced anyone to borrow money, nor has it forced any country to pay, nor has it imposed any political condition on loan agreements, nor has it sought any political interest" within this system.  
      
    According to the 40-page report issued by the American think tank “AidData”, the World Bank, the Harvard Kennedy Institute and the Kiel Institute for the World Economy, loans granted by China increased between 2016 and 2021, a period in which 80 percent of the total amount granted was concentrated over twenty years. .  
      
    "China has developed a 'New Silk Roads Rescue' system that helps beneficiary countries avoid default and continue to repay their loans, at least in the short term," the report said.  
      
    These cases have intensified in the past years in the context of high inflation and interest rates, as well as the economic impact of the Covid-19 pandemic.  
      
    Compared to the International Monetary Fund and the liquidity support provided by the US Federal Reserve, the volume of bailout loans provided by China remains modest but is increasing rapidly, the document indicated.  
      
    These loans are also more opaque and the interest rate on them reaches 5 percent on average, compared to 2 percent for the interests of the International Monetary Fund.  
      
    "Beijing targeted a limited number of potential beneficiaries, and almost all Chinese bailout loans were to countries from the New Silk Roads with low or middle incomes but with large debts to Chinese banks," the report said.  
      
    China this month agreed to reschedule its loans to Sri Lanka, paving the way for the release of a $2.9 billion International Monetary Fund bailout for the South Asian island.  
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