China loans pushing world’s poorest countries to brink of collapse

Spread the love

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. 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 forced 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. In Kenya, the government has held back paychecks to thousands of civil service workers to save cash to pay foreign loans. The president’s chief economic adviser tweeted last month, “Salaries or default? Take your pick.”

Read more:
The Associated Press »

Video: Hear why this Italian couple argue about whether they should have children | CNN

CNN’s Barbie Nadeau reports on what’s driving Italy’s birth rate to record lows. Read more >>

China’s Baidu beats quarterly revenue estimates on China re-openingSearch engine giant Baidu Inc beat first-quarter revenue estimates on Tuesday as businesses spent more on advertising amid China’s economy recovery, after the country dropped most of its strict COVID curbs late last year.

China’s Envoy: China to resume imports of Australian timberChina’s ambassador to Australia, Xiao Qian, said that China is on track to resume imports of Australian timber from Thursday and that talks are underw

Clock Ticking on Chase Elliott’s NASCAR Playoff HopesDarlington Cup Notebook: The 2020 Cup Champion still needs a win to qualify for Playoffs after missing time with broken leg.

2023 NBA Draft Lottery Reaction | On the Clock with Krysten Peek

Clock Out of Losing Sleep: A Simple and Effective Solution To Manage InsomniaIndiana University research led by Spencer Dawson finds that clock-watching while trying to sleep worsens insomnia and boosts sleep aid usage. The study suggests that avoiding checking the time could be a simple and effective solution to manage insomnia. Watching the clock while trying to fall as

Beauty Around the Clock: Valentina SampaioThe Victoria’s Secret model on daily boxing workouts, Brazilian skincare, and the lipstick she uses as blush.

Source link