Skip to comments.World’s Poorest Nations Face ‘COVID-19 Debt Trap’ by Creditors like China
Posted on 04/07/2021 7:07:17 PM PDT by SeekAndFind
The world has averted a systemic debt crisis amid the pandemic. However, the poorest developing countries continue to face significant debt problems, raising global worries over multiplying debt traps by creditors like China.
Addressing the rising risk of a systemic debt crisis in developing countries is one of the key themes at this week’s virtual spring meeting of the International Monetary Fund (IMF) and the World Bank.
Economists believe tackling debt vulnerabilities in poor nations is critical for preventing divergent recoveries around the world. Hence, IMF and World Bank officials are calling for extending debt relief for the most vulnerable countries, to help them address challenges caused by the pandemic.
“The poorer countries don’t have a way out of these very heavy debt burdens,” World Bank President David Malpass said during a press conference on April 7.
He said these countries face inequality in terms of access to credit markets and have growing fiscal deficits that are becoming problematic.
In addition, Malpass referred to China’s controversial lending practices without naming it, saying that opaque debt contracts and unbalanced relationships between creditors and debtors complicate debt relief efforts.
Speaking at a seminar titled “Averting a COVID-19 Debt Trap,” IMF Managing Director Kristalina Georgieva said that many countries entered the pandemic with elevated debt levels. During the pandemic, the collapse of economic activities then caused public debt to reach 100 percent of the global economy.
According to Georgieva, “56 percent of low-income countries are either at a high risk of debt distress or already in debt distress.”
Many of these highly indebted countries “fall in a debt trap,” she said because “they cannot generate enough growth to bring down debt levels and these debt levels hold them back.”
(Excerpt) Read more at theepochtimes.com ...
this is deep state/cabal....create crisis and then make money on it....its why the world lives in debt.
This China debt trap is how they’ve been able to do most of what they’ve done in the world. “Loan money” to some 3rd world booger eater under the guise of “helping”, knowing they’re going to steal as much as possible.
Move their family to Dubai or London and then let the Chinese rape thier country of whatever resource they have.
“...According to Georgieva, “56 percent of low-income countries are either at a high risk of debt distress or already in debt distress.”
Many of these highly indebted countries “fall in a debt trap,” she said because “they cannot generate enough growth to bring down debt levels and these debt levels hold them back.”...”
In addition to these “low-income countries” the United States is also “falling into a debt trap” because we also “cannot generate enough growth to bring down debt levels”. Yet we keep getting in deeper to the tune of trillions of dollars.
I believe that China’s goal was to make these loans, then use
them as leverage against the nations having a hard time paying
There’s no love lost between the Chinese leadership and
At the same time, if we look back to the 1960-1980s time frame,
US lending institutions were being condemned for providing
loans to Central and South American nations, as if they forced the
loans on them and were evil when the payments came due.
I provide this information, not to give China cover against
the charges leveled against it, but to add some context to
If we try to trash China for it’s actions, we need to get
our ducks in a row so this obvious tactical defense by China,
will not stand.
1. We need to find and be able to point out ways our loans
came about differently, and can be defended on that basis.
private institutions versus China’s government banks.
2. At the same time we need to be able to clearly point out
how China’s came about differently and were clearly devious.
private loans are harder than government loans for
governments to use for political pressure. (governments
can still use pressure if only to twist arms to help pay
off private loans.)
If we can’t achieve steps one and two here, we should be
careful how stridently we condemn China, because we might
come off as condemning our own lending institutions actions
decades earlier, and seemingly be seen as unfair to China,
causing our image to suffer in the process.
I don’t think they were devious, but I’m sure a lot of our
enemies would be certain of it, and love to claim that.
Unverified rumor on Reddit and Twitter:
Duterte just signed over all of the West Philippines Sea (the main sea artery for most non-Atlantic trade) to China in exchange for Chinese vaccine.
RE: Duterte just signed over all of the West Philippines Sea (the main sea artery for most non-Atlantic trade) to China in exchange for Chinese vaccine.
Fake news. He can’t do anything without Congressional approval.
The Philippines Congress is now just a rubber-stamp body, as is the Philippines Supreme Court. They all take orders from Duterte and the Chinese Communist Party. The Liberal Party (opposition, think Leni Roberdo and the Aquinos) are all but powerless. Only Trillanes puts up any vocal opposition.
Spot on! Funny, too. I spat out ice cream reading it.
China is Evil.
“if we look back to the 1960-1980s time frame,”
Sure, but 50 years later...
The span of time doesn’t matter with regard to this issue.
Two years ago or 100 years ago, the same dynamic comes into
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