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China bails them out .. and it will be the worst decision they ever made .. by asking China ..
The whole foreign aid thing is a mess and ripe for fraud. We typically give ~1 billion in foreign aid each year. There are various charities collecting huge sums as well. On top of this we apparently give 5.9 billion to NGO each year. And next year we'll give 3 billion to Ukraine.Perhaps it is time to cut the UK's 'aid' to zero
Exactly - work till you drop to send it to some godforsaken holeThe whole foreign aid thing is a mess and ripe for fraud. We typically give ~1 billion in foreign aid each year. There are various charities collecting huge sums as well. On top of this we apparently give 5.9 billion to NGO each year. And next year we'll give 3 billion to Ukraine.
Bad times for Paddy soon methinks. Anyway, 2.3 billion is peanuts in today's fantasy world where retirement age disappears into the sunset.
China are loaning much smaller governments a lot of money because Chinese communism is philanthropic communism.There is actually no evidence of the so called "Debt Trap" by China. The main difference with Chinese loans are:
- Easier to access
- Higher interest rate
- Cross contract loans
- Contracts that ensure China can get its money back faster
China has never seized an asset or infra for debtors that couldnt pay and have actually written off a lot of the debts without much funfare.
The main issue is the fact that they release loans so easily, so a corrupt government get access to the money but manages the loan poorly.
If you have a decent finance ministry the Chinese loans are no better or worse than what others offer. Even the former ministry of Finance when interviewed mentioned the Chinese loan offer and avice out of its debt was better but was pressured by the EU to loan more from EU countries and ignore China.
China: Is it burdening poor countries with unsustainable debt?
China has become a big lender to poorer countries, and there's been criticism of its approach.www.bbc.comSomeone will mention Sri Lanka, so Im just going to say if you look at what happened its more to do with Sri Lankan governments being idiots. Think of China as a drug dealer, he wont stick the needle in your vains, but he would gladly sell you your death if you are a junkie.China’s overseas lending and the looming developing country debt crisis
COVID-19 is wreaking economic havoc, and its most severe consequences are likely to be felt in the developing world. Recession, depressed commodity prices, collapsing cross-border trade, and a flight to safety in financial markets have set the stage for a replay of the 1930s and 1980s debt...voxeu.org
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