Posted on 12/11/2018 10:28:57 AM PST by C19fan
Rafael Correa wanted to fast-track development projects when he was president of Ecuador, so he borrowed billions of dollars from China. But the loans have come back to haunt his successor, Lenin Moreno, who will go hat in hand to China this month to seek more flexible terms and breathing space.
A onetime ally and now bitter enemy of Correa, Moreno and his government are straining under a huge budget deficit caused partly by obligations to the Chinese, whose loans financed roads, dams, schools and office buildings during Correa’s time in office from 2007 to 2017.
Ecuador is one of several Latin American countries that in recent years benefited from China’s lending spree. Like other loans China has made in the region, those to Ecuador are partially payable with shipments of natural resources — oil, in Ecuador’s case — which China needs to stoke its fast-growing economy.
(Excerpt) Read more at heraldmailmedia.com ...
Shoulda brought a longer spoon.
A lot of FReepers have said they prefer the Asian tit to the North American variety. Ecuador does too.
Its difficult to fake real savings in an economy
The ancient aphorism of “Beware of Greeks bearing gifts” should perhaps be updated to the modern standards! On the other hand it appears that Ecuador would have been wise to pay more heed Benjamin Franklin’s “Neither a borrower nor lender be”.
This “Chinese Loan Entrapment” thing is used over, and over, and over.
It’s usually used in **seaports** that the PLA Navy later wants influence over.
If I’m not mistaken, quite a few countries in Africa are feeling the same pinch.
IMHO, the Chinese are just really big Predatory Lenders, just like the clinton’s and their partners in Whitewater. The clinton’s sold homes to people they knew, couldn’t afford them, took their down payment, a few mortgage payments, foreclosed on them and then resold the house. They were some of the OGs in that area. No different than Delta Funding in NY. Had a friend that worked for them when he was first starting out, they’d flip the same house 3 times in a year.
Anywho... the Chinese make all these loans with their funny money, knowing that the countries have no way of paying it back and then take whatever natural resources the country has, in exchange. They’re taking oil from the Venezuelan’s right now. They’re taking all sorts of minerals and metal out of the ground in Africa. And all the leaders in those countries are wondering why their buttholes are so sore.
These victims of Chinese predatory lending could just tell
China that they aren’t going to pay them back.
Unconfusus say: If you have overspent your infrastructure budgets over the years, borrowing from loan-shark country is probably not best solution to problem.
Do you think the Chinese are building a blue water navy, complete with aircraft carriers, so that they can threaten San Francisco? Western nations used to send gunboats to third world nations that attempted to repudiate foreign loans, or expropriate infrastructure paid for with foreign capital.
That sort of thing has gone out of fashion the West. But I suspect most of us will live to see the PRC threaten third world nations who don't pay up with something more robust, and kinetic, than a complaint filed with the World Bank.
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