China opts for a deferment of Africa’s debt payment rather than an outright write-off | AfriTV Online

China is currently Africa’s largest bilateral creditor and has bailed the continent times without number even up to the tune of $152 billion in the last 18 years, thus raising concerns among pundits over how feasible it will be for African nations to r...

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China opts for a deferment of Africa’s debt payment rather than an outright write-off

Published by: Tobillionaire
05/19/2020 03:00 PM

China is currently Africa’s largest bilateral creditor and has bailed the continent times without number even up to the tune of $152 billion in the last 18 years, thus raising concerns among pundits over how feasible it will be for African nations to reimburse these loans especially with the current advent of the Coronavirus pandemic that has plagued the continent’s nations.

With such astronomical amount Africa owes the Asian giant, it is highly likely for China to agree a delay in repaying the $152 billion debt rather than an outright forfeiture, a move that is at odds with prior forbearance plans from groups such as the Paris Club. China’s lending has always been on the back of the idea that it contributes to structural transformation and economic development which will afford it leverage to gain overseas economic and political clout in these borrowing nations.

As the figures do not seem to recede anytime soon, China is willing to negotiate payment extensions rather than a write-off with the belief that their lending can aid viable projects that will give these countries good positions where they can repay the debts.

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