Sri Lanka hands over port to China to pay off debt

General
1

Sri Lanka has formally handed control of a strategic port on its southern coast to China as part of a 99-year lease agreement.

Under a US$1.1 billion (Dh4bn) deal that the Sri Lankan political opposition and trade unions have called a “sell-out” move, Chinese firms now hold a 70 per cent stake in Hambantota port.

The $1.3bn port was built with loans from a Chinese state-owned bank and opened in 2010. But the Sri Lankan government has struggled to repay the debt, with the project incurring heavy losses. Along with loans taken out for other infrastructure development projects, Colombo now owes China a total of $8bn.

https://www.thenational.ae/image/policy:1.684605:1536557613/wo12-SriLanka-China.jpg?f=16x9&w=1024&$p$f$w=92915ee
“With [the Hambantota port] agreement we have started to pay back the loans,” Sri Lankan prime minster Ranil Wickremesinghe said during a handing-over ceremony in parliament on Saturday. “Hambantota will be converted to a major port in the Indian Ocean”.

He added that the move would lead to economic development and promote tourism. Hambantota sits on one of the world’s busiest marine routes, with much east-west trade passing through the Indian Ocean’s sea lanes, but most ships bypass it and heads for the already well established harbour in Colombo, the Sri Lankan capital.

https://www.thenational.ae/world/asia/sri-lanka-hands-over-port-to-china-to-pay-off-debt-1.684606

2

There is another well established in port in sri lanka and two, the Chinese will just run the port but not collect taxes. not such a big deal.

3

Perhaps we should also hand over our port to the Chinese because they will obviously run it efficiently with no corruption.
We may think its a bad thing but end up making Mombasa a true continental hub.

4

For 99 years:confused::confused::confused::eek:. So heri turudishe mzungu atucolonize ndio tuwe “A TRUE CONTINENTAL HUB”?

5

This is the 20th post on the same.

China only holds 14% of Sri Lanka debts, the west holds 86% of their debt. However the spin here is that China is to blame for Sri Lanka debts since they were the last to give them and it took them beyond 100%. That 14% loan from China was project specific like this port while they were to build roads, railways and infrastructure leading to the port themselves. China built the port on schedule but Sri Lanka failed to build the infrastructure to connect to it. Why, they were too busy repaying the 86% debts to the west mercenaries called world bank, IMF etc. Sri Lanka was about to fail its debt obligations and the west didn’t try to help them, instead China did. They converted the debt to equity and they got a 99 years lease to this port. They also agreed to finish its masterplan in full which meant Chinese investors would build the expressway, train and industrial park to draw in business to this port. Up to now the west still collect their 87% debt repayments plus interest yet they will complain China is to blame. Basically the west spin media have twisted facts to convince gullible people of the true debt challenge of Sri Lanka to be caused by China. They actually rescued them and when everyone left, they stayed back to invest in their economy.

Last week President Xi postponed all Chinese commercial loans that were due from 2019 by one year to help countries a year to plan themselves. They can either take the year to prepare better for the repayment I.e collect more revenue now or start renegotiations individually for a longer grace period or payment period. I hope our SGR loan will be one of them. Ethiopia has already been given a reprieve. Their SGR loan which they started paying in 2017 has been extended from 10 years repayment period to 30 years. That means they will pay a third of the current amount from next year.

6

My thoughts as well…

We are bieng fucked by our fellow country men anyways… But this time its the Chinese who will be fucking us… Atleast they have small dicks…

7

:D:D:D
Relax.

8

You’re really spinning this like you’ve something from Chinese loans. Here’s more for your spin;

Zambia’s power company, ZESCO, is set to be among the first casualties of China’s takeover after defaulting on loan repayment, a report revealed.

The report released by Africa Confidential – a United Kingdom (UK) based newsletter – titled: Bills, Bonds and even Bigger Debts, claims that Zambia leaders are in talks with China over a possible takeover of the country’s electricity company. The report also said that Zambia’s national broadcasting corporation, ZNBC, is already owned and run by China.
https://www.africanliberty.org/wp-content/uploads/2018/09/Zambia’s-power-company-reportedly-taken-over-by-China-after-loan-default-1.jpg
The report states: “A major worry of the International Monetary Fund (IMF) and United States (U.S.) is that China’s BRI strategy is first to encourage indebtedness, and then to take over strategic national assets when debtors default on repayments. The state electricity company ZESCO is already in talks about a takeover by a Chinese company. The state-owned TV and radio news channel, ZNBC, is already Chinese-owned. The long-term outcome could be effective Chinese ownership of the commanding heights of the economy and potentially the biggest loss of national sovereignty since independence.”

Zambia is one of the African countries whose leaders were in China earlier this week for the China-Africa summit. Zambia President Edgar Lungu was reported to have gone back home after visiting a number of Chinese companies and after receiving a grant of $30 million for the Lusaka East Multi-facility Economic Zone electrification project.

https://www.africanliberty.org/2018/09/07/zambias-power-company-reportedly-taken-over-by-china-after-loan-default/

9

very good… at one point i asked" the rate at which we are in debt crisis and we fail to pay chinese, what will they take from Kenya ?" nikajibiwa ati china debt is 13% of the total debt so no worry…nikauliza tena" tayari wameenda kukopa another 300b ya Nairobi Kisumu SGR to make it 26% of national debt, what will we give in to repay that loan?" nikajibiwa … "oldman kufa pole pole "

10

According to Ndii, we should not even be worried about the VAT on fuel. Whether it is scrapped or not is inconsequential. Whatever awaits the country economically is much much worse.

11

Yes, since that Sri Lanka angle has failed let’s try Zambia.

Well its the same thing. Remember the crippling structural adjustment programs of the 90’s SAP forced on sub saharan Africa by IMF and World Bank. Well it fucked up Africa. They had this idea of budgetary support (loans) tied with harsh conditions. retrenchment, privatization, end of all social government programs. Well government stopped serving peoples interest but started serving this institutions interests. By 2000 most nations in Africa had accumulated debts courtesy of IMF and World Bank on its books but nothing to show for it except stress and economic slavery. By 2005 when China started giving development aid Zambia had a lot of debt already while its infrastructure was ancient. China started upgrading those infrastructure using loans and it gave the country a lifeline. Its copper industry had collapsed with its poor commodity price, the mines were rundown and being sold for a song before China came along. Zambia was also desperate at that stage and gave a lot of leeway to get Chinese FDI and that led to uncontrolled no of Chinese citizens relocating there. The rest of Africa learnt from Zambia in negotiations with Chinese. To answer your question, Zambia loans are majority from the west not China. The west is not rescheduling them, they are paying for them presently. When Zambia lacked forex to pay Chinese loans, instead of China letting them default and making their currency go on a free fall they offered the same rescue terms. Let’s convert our loans in Zambia power be converted to equity to the value of the loan I.e 30%. Then as shareholders we will now contribute funds for future expansions in projects as shareholders not loans. That saves their government on two fronts. They debt is settled and they don’t have to take future loans for future Zambia power expansion. Same to the airport, it might be strange here in Africa but a lot of Asian and European airports are joint ventures between government and private sector. The investor buys shares in the airport, commits to invest in its modernization and expansion. Government still maintains all security apparatus in the airport to keep protocols and certifications. That again saves government the burden of raising 100’s of $ millions for the same. I could say the same about the national media but hey its Chinese and the west keeps brainwashing people they are superior. When KBC airs DW, CNN, BBC for more than 12 hrs for free it doesn’t give them a cent of help except one or two token scholarships. The Chinese are providing broadcasting equipment, building transmitting infrastructure and cash for operations. However they are the ones taking over? I’m glad I never suffered from the west careful brainwashing present in Africa. Before China showed up we were broke and in debt already. Yes their infrastructure loans tipped us over but they are trying to cushion us from it. The west is just giving lip service and unfulfilled promises with no concrete projects to talk about.

12

Chinese are coming! Run

13

[ATTACH=full]192320[/ATTACH]mlikuwa mnalia sponsors wanatesa…sasa wote watachukuliwa na Chinese. They will take over brothels, clubs, restaurants…kila kitu. Alafu those tiny asian girls waanze kuja huku.wale huwa wanachapwa vitu pale xvideos kama wanalia.

14

You’re sounding more and more like Ruto’s advisor. Please, share some of the “bahasha” loot.

Deputy President William Ruto on Friday said the government is working hard to resolve the hike in fuel price due to the 16 per cent VAT on petroleum products.

“Let me assure you that the government is in talks with the Members of Parliament to resolve this issue amicably. We understand what the people are going through and as a government, we have the responsibility to listen to you,” said Ruto.

https://www.the-star.co.ke/news/2018/09/07/ruto-pledges-quick-solution-on-fuel-crisis_c1815367

15

Malaysia wameaamka

https://www.youtube.com/watch?v=ThedGta_zr4

https://www.youtube.com/watch?v=xU4rJcCr86A

16

Tiger country kabisaaaa

17

Son of warefu clan(mtafute jina ingine bana) sovereign debt is not like private lending such as between individuals and banks . If you default, the lender does not send auctioneers to collect, more often you get a chance to renegotiate and make good on your debt. if you think about it, it defeats purpose to forcefully take over assets such as Mombasa port or JKIA, we could just frustrate until they quit.
sri Lanka for example leased out their port because in their hands it was a dud, but in Chinese hands, it could become a new growth engine for their economy without further govt investment. These things are not as straight forward as the media portrays.
Bottom line, we will not have to give up anything if we default, the first option is to renegotiate for more lenient terms, second is restructuring converting debt to equity in such assets. But we will not get there because our deficit is targeted to reach below 4% by 2021.

18

The BbC post? For real? Just BBC would be adequate.

19

Zambia hands over International Airport.

[SIZE=5][B]China to take over Zambia’s international Airport for debt repayment[/B][/SIZE]

Signing a contract with China is like, ascribing to the boiling frog effect; a fable describing a frog being boiled alive slowly.

If you drop a frog suddenly into boiling water, it will jump out, but if you put that same frog in a vessel of water and start heating the water gradually, it will adjust its body temperature accordingly until it reaches a stage beyond its capacity and dies foolishly.

It’s rather pathetic how China is re-colonizing Africa by appealing to the ignorance and selfish interests of our leaders. Today, the Chinese are offering mouthwatering deals to Africa, both in cash transactions and the outmoded or rather defunct barter trade which seem very attractive on the outlook but dangerous in reality.

The Zambian government contracted the Chinese, lazy-thought and glossed over details thinking they were granting consent to gernuine terms but the whole thing just morphed into modern day colonialism.

China is now proposing to take over the Kenneth Kaunda International Airport should Zambia Government fail to pay back its huge foreign debt on time. The issue of whether Zambia posses the required economic muscle to repay that debt is in contention considering the amount involved. It’s typical of the Chinese strategy.

That moreover is not the only thing Zambian suffered from China; the Chinese own 60% shares of the Zambian National Broadcasting corporation which means, Chinese have an influence over what should or should not be premiered on their sets.

Ghana is equally towing same lane as our leaders have started signing contracts already; Chinese owned company, STARTIME is gradually gaining grounds over our major institutions, our biggest mining companies will soon be “taken” over by a Chinese company and many others.

Now if this is not modern day slavery, what then is it? The 21st century African slave is never in chain; we are in debt caused by the ignorance or selfish interests of our leaders. Pathetic!

Source: Dily Rant Ghana, Reporting by Richard Krah.

20

Bwana Spear, explain this one of the sole leader who turned down Chinese generosity:

[SIZE=7][B]Malaysia cancels China-backed pipeline projects[/B][/SIZE]

[SIZE=7]****[/SIZE]

[SIZE=7][B][SIZE=7][B]Pakistan’s new government is trying to walk back from alarming Chinese debt[/B][/SIZE][/B][/SIZE]