Tag Archives: Debt

Chinese loans may trap Africa into debt – experts


By Hassan Isilow

JOHANNESBURG

Some leading African analysts have said China may be trapping African countries into debt by offering them heavy loans they may not be able to repay.

“In the end, China will ask defaulting countries for other forms of re-payment such as harbors and land,” Northwest University Professor Andre Duvenhage told Anadolu Agency in an interview.

He said he believes that in the long run, China might start influencing political and economic decisions of certain African countries.

However, China denies that its loans to the continent have political strings attached.

“China does not interfere in Africa’s internal affairs and does not impose its own will on Africa,” President Xi Jinping told leaders at the two-day Forum on China-Africa Cooperation…

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Barbados government wins support of creditors for debt restructuring plan


Prime Minister Mia Amor Mottley addressing the opening ceremony of the 65th Meeting of the Organisation of the Eastern Caribbean States’ (OECS) Authority in St. Lucia.

The island’s main creditors have given the green light to the Government’s debt restructuring plan.

There were initial reports that some creditors had rejected the offer made on September 19, which sought to exchange existing Government paper, for new debt instruments.

The plan proposes a cut to interest rates and longer terms to maturity.

The development comes ahead of a planned address to the nation by Prime Minister Mia Mottley on Sunday at 5 p.m. She is expected to provide a wide ranging update on measures to resuscitate the ailing Barbados economy.

Last month, Central Bank Governor Cleviston…

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An overview to understanding the African debt crisis



The role of debt in Africa is that of a mechanism that has created an enslaving relationship between Africa and its creditors.”
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African governments’ debt payments double in just two years


In new analysis released ahead of the IMF
IMF
International Monetary Fund

Along with the World Bank, the IMF was founded on the day the Bretton Woods Agreements were signed. Its first mission was to support the new system of standard exchange rates.

When the Bretton Wood fixed rates system came to an end in 1971, the main function of the IMF became that of being both policeman and fireman for global capital: it acts as policeman when it enforces its Structural Adjustment Policies and as fireman when it steps in to help out governments in risk of defaulting on debt repayments.

As for the World Bank, a weighted voting system operates: depending on the amount paid as contribution by each member state. 85% of the votes is required to modify the IMF Charter (which means that the USA with…

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St Kitts-Nevis achieves 60 percent debt to GDP ratio


Prime Minister Dr Timothy Harris

By Clive Bacchus

BASSETERRE, St Kitts (WINN) — Prime Minister Dr Timothy Harris has reported a 60 percent debt to GDP ratio and financial surpluses for St Kitts and Nevis.

The prime minister, in making his opening remarks at his monthly press conference, said, “The financial secretary has reported that our debt ratio, which stood at 78 percent at the end of December 2014, is now in keeping with the international benchmark of 60 percent debt to GDP ratio.”

Harris offered examples of the steps taken to lower the country’s debt to GDP ratio.

“We got to this milestone by making a substantial payment of $36.2 million on the land for debt swap arrangement with National Bank. We achieved this milestone by paying down a total of $25.1…

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Japan warns African countries on debt burden


TOKYO: The Japanese Foreign Affairs minister Taro Kono has urged African governments to watch their appetite for loans, advising that “sound debt management” is key for sustainable development of the continent by African themselves.

Mr Kono speaking Saturday at the opening of the Tokyo International Conference on African Development (TICAD) ministerial meeting in the Japanese capital, said international assistance should be provided in “accordance with international standards such as transparency, openness, and economic efficiency, in view of life-cycle costs as well as debt sustainability of recipient countries.”

“These principles are crucial components of Japan’s “Quality Infrastructure” initiative, based on which Japan is supporting enhanced connectivity…

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