Posted on 12/23/2018 6:20:59 AM PST by AdmSmith
Kenya runs the risk of losing control of the Port of Mombasa if it should default on loans from state financial institution China Exim Bank, according to a new report from Kenya's auditor general. The terms of a $2.3 billion loan for Kenya Railways Corporation (KRC) specify that the port's assets are collateral, and they are not protected by Kenya's sovereign immunity due to a waiver in the contract. "The payment arrangement agreement substantively means that the Authority's revenue would be used to pay the Government of Kenya's debt to China Exim bank if the minimum volumes required for [rail] consignment are not met," auditor F.T. Kimani wrote. "The China Exim bank would become a principle over KPA if KRC defaults in its obligations."
In addition, any dispute with China Exim Bank would be handled through an arbitration process in China, not in Kenyan courts. The auditor general expressed concern that the port authority had not disclosed these arrangements in its financial statements.
1: China knew very well Kenya didn't have ability to make the loan payments. Kenya's GNP isn't substantial enough, no longstanding production of durable goods, no strong financial / banking system, moderate trade but nothing to shout about. The Chinese are no dummies, other countries need to heed this lesson.
2: It's unbelievable as to what's going on in the Maritime World and being allowed to continue / China comes in and buys the Waldorf, buys the Sheraton Motor Inn on west 42nd street & 12th avenue, creates and claims new islands in the South China Seas and now Mombasa goes to them / The American President Lines of San Francisco goes foreign and still keeps the name of American President Lines . Obviously we continue to let this happen and do nothing about it /
3: China already has ownership of Zambia's national electric power company as well as the national broadcaster
Conquest by loan default.
China is playing for keeps.
Where is Obama? Shouldn’t he be appealing to the UN on behalf of his homeland?
If Kenya defaults on that loan, China gets one of Africa’s major port’s. It appears the loan contract was specifically drawn up with that in mind. This is the debt trap diplomacy China is trying to implement in the South Pacific
It’s simple free trade between sovereign countries.
Mao-Mao ?
China doesn't worry about how many executives in their boardrooms are women or minorities.
Kenya can always nationalize the asset and kick out China.
China is quietly and wisely investing in Africa. They get most of Angola’s oil in exchange for cash, cheap labor, and construction technology. Angola will default on loans in the near future and become Chinese territory.
Isn’t that what the World Bank does?
Hate to see WWIII start over a sh_thole country.
If China takes over Mombasa, will they release Obama’s real birth certificate?
Eric Hundman is following this https://twitter.com/ehundman/status/1076481250767052800
More precisely, what the IMF does.
On default, draconian neasures to assure repayment and recovery are put in place. The result is imposition of tariffs and controls to insure the tariffs are collected and not bypassed by various corrupt schemes.
I believe that Kenya might have been under such control already and the port was outside that control.
Where are the leftist in the streets in all the western capitols burning cars and screaming about imperialism, and demanding China get out of Kenya? Oh sorry I forgot, they only do that when it’s the US or some other western country.
That’s already started.
If O would sell out US, why wouldn’t he sell out Kenya?
and those old favorites the Panama Canal and the Port of LA.
The only record of Obama’s birth is an inscription on a tree that three witnessing witch doctors made.
According to the Dims China is good. Right?
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