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Nigeria just defaulted on $33 Billion debt!
BBC ^

Posted on 08/28/2002 1:20:09 AM PDT by BlackJack

Nigeria has said it can no longer afford to service its $33bn foreign debts because of plunging oil revenues and the failure of some of its privatisation plans.

Consequently, the country has suspended payments on its debts, said Central Bank governor Joseph Sanusi.

Last month Nigeria - one of the world's largest oil-producing nations - held foreign exchange reserves of only slightly more than $8bn, down about a fifth since December. The external sector of the economy was under pressure during the period under review.

Mr Sanusi said he had decided to halt all debt repayments rather than to eat further into the reserves.

Most of Nigeria's debt is owed to foreign governments, members of the Paris Club of official creditors.

Earlier this year, Nigeria parted company with the International Monetary Fund about how best to achieve a turn-around in its economic fortunes.


TOPICS: Breaking News; Business/Economy
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To: altair
Democracy, freedom, and liberty are awesome but worthwhile burdens to place on a citizenry. The problem is that global societies who never saw it in their role as individuals to participate in their government, are not capable of establishing, operating, and maintaining a democracy. Corrupt communists is all they deserve. No better than the previous tribal chiefs who sold them into slavery when they got uppity or too little food was around.
41 posted on 08/28/2002 7:03:59 AM PDT by blackdog
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To: MadIvan
What little infrastructure they have, they got from us. Pardon me, but WE will take our share of the oil.

Yea but the $33 bn., they got from us....Sell YOUR oil then pay up.

42 posted on 08/28/2002 7:16:59 AM PDT by lewislynn
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To: sarcasm
They must have started the e-mail scam already. I got one yesterday. :^)
43 posted on 08/28/2002 7:22:58 AM PDT by Diver Dave
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To: BlackJack
Why not invade? Isn't that the stock freeper answer these days?
44 posted on 08/28/2002 7:25:50 AM PDT by Austin Willard Wright
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To: BlackJack
Nigeria just defaulted on $33 Billion debt!

Could it be due to all those email giveaways of millions?
45 posted on 08/28/2002 7:26:11 AM PDT by aruanan
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To: BlackJack
Another typically corrupt and incompetent African government begins its swoon.

It's a source of never-ending amazement to me that the Western governments continue to pretend that these folks are capable of maintaining a civilized society.

The real reason for such pretense is, of course the intrinsic charm of the countries in question, which originally drove the colonization of the place. Nigeria's charm is measured mostly by the 55-gallon barrel. Other places feature a charming profusion of carats or troy ounces, or quaint cottage industries based on refractory metals.

Sure, you'll find the occasional (and invariably Western-educated) able statesman. You might even find a group of them, who might be able to maintain a government for a few years. Kenya seems to demonstrate that it's possible to maintain a relatively stable, if authoritarian, government. There have been only two post-colonial presidents in the past 40 years: Jomo Kenyatta, and Daniel Arap Moi, whose longevity in office is due almost entirely to their success in suppressing internal opposition. (It doesn't hurt, either, that Kenya had the most gradual and thorough de-colonization experience.)

There are many, many honest, decent, hard-working people in Africa. But for the most part Africans do not have any political tradition based on rule of law. They're still steeped in their ancient tribal customs, and as has been demonstrated with awful and bloody regularity, those tribal ties still bind very tightly.

The problem is that we want their stuff, and the only way to get it is to prop up governments of people with whom we can deal -- however many bribes it takes, and however many people they oppress.

46 posted on 08/28/2002 7:52:28 AM PDT by r9etb
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To: operation clinton cleanup
America had darn well better get on its knees! And start praying for this and other nations, stat!
47 posted on 08/28/2002 8:59:12 AM PDT by Marysecretary
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To: BlackJack
Jeez, and I was hounded and threatened with jail for owing California a $50 tax bill.
48 posted on 08/28/2002 9:06:34 AM PDT by rockfish59
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To: Marysecretary
America had darn well better get on its knees! And start praying for this and other nations, stat!

nice thought, but its too late for anything except 'thinning of the herds' by whatever mix of factors-also might throw in some violent force into the mix, for our security concerns.

49 posted on 08/28/2002 9:11:51 AM PDT by 1234
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To: BlackJack
and the stock markets continue to tumble...
50 posted on 08/28/2002 9:23:58 AM PDT by Bill Davis FR
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To: CatoRenasci
I think it will take a complete collapse of the economies, mass starvation and mass murder, not to mention epidemics of AIDS and other diseases like ebola and the old traditional tropical diseases we thought pretty much conquered...

I think this is happening now.

51 posted on 08/28/2002 9:36:04 AM PDT by Former Proud Canadian
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To: CatoRenasci
I just throw this in for discussion, sort of a "what if" comment. Before black rule, South Africa developed nuclear weapons, with the help of the Israeli's. A test explosion was detected over the South Atlantic.

Now, the Boers are under tremendous pressure. As someone commented earlier, they have a love for that particular patch of land. They have the brains, I am just wondering how well they are organized. If osama can obtain suitcase nukes (I don't think he has any, but that's another story), why can't the Boers acquire/develope their own WMD's like they once did? Wouldn't use of such weapons trump anything the indiginous revolutionaries might try?

Just asking.

52 posted on 08/28/2002 9:41:48 AM PDT by Former Proud Canadian
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To: Former Proud Canadian
"I think it will take a complete collapse of the economies, mass starvation and mass murder, not to mention epidemics of AIDS and other diseases like ebola and the old traditional tropical diseases we thought pretty much conquered..."
I think this is happening now.

kinda, but a question for ya: ya think US stock market would be helped by an acceleration of the tempo of these factors?

53 posted on 08/28/2002 9:47:25 AM PDT by 1234
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To: 1234
I think, if we woke up tomorrow and Africa was depopulated, it wouldn't cause a ripple in the markets.
54 posted on 08/28/2002 9:48:59 AM PDT by Former Proud Canadian
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To: nopardons
Black Commies / tyranical. 'Nough said.

Not, that's not enough said. Yes, they are black, but they're not exactly communists. This is the first generation of democratically elected rulers, and they've been trying to privatize government services. After decades of military mismanagement, they've been having all sorts of problems. And the predominantly Muslim north of the country has been threatening to secede. But you can't call them communists, and you can't dismiss their government simply because of skin color.

55 posted on 08/28/2002 9:53:12 AM PDT by andy_card
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To: Former Proud Canadian
I think, if we woke up tomorrow and Africa was depopulated, it wouldn't cause a ripple in the markets.

'pity, that'.
least i'm glad to not hear the tripe that we need'em for our export markets....

56 posted on 08/28/2002 9:53:59 AM PDT by 1234
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To: BlackJack
Nigeria has more than oil. Three decades ago we were talking about it becoming another Saudi Arabia - its income from natural resources being returned directly to the people and the latter pulling all of Africa up by its collective bootstraps. Some said it was richer in natural resources than South Africa and (remember this one?) Rhodesia combined. About that I don't know, but it certainly had tremendous potential.

A fine fantasy. It fell to a looting elite like so much else in that haunted continent. And now instead of exporting wealth it's importing it and defaulting on repayment. And naturally they're falling back on the old whipping boy, colonialism.

57 posted on 08/28/2002 9:54:18 AM PDT by Billthedrill
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To: Billthedrill
True. But now, for the first time, they've had the opportunity to democratize and share the spoils of their resources among more than their corrupt ruling elites. If this bankruptcy is any sign, they may have blown the chance. I guess time will tell, but regardless, Royal Dutch/Shell will still buy their oil.
58 posted on 08/28/2002 9:59:48 AM PDT by andy_card
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To: xsive_guy
You just co-sign the loan, the IMF/WB banksters get the profit, you get the loss. Sounds fair to me,not.
59 posted on 08/28/2002 10:21:35 AM PDT by steve50
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To: Former Proud Canadian
Oh, it is happening now, but it will be 5 or 10, maybe even 15 or 20, years before things get so bad that they throw in the towel: I mean millions, perhaps even tens of millions dead from starvation and an equal number dead from disease, perhaps 100-200 million dead overall.
60 posted on 08/28/2002 10:22:52 AM PDT by CatoRenasci
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