Will take care of debt issues of Belt and Road projects: China

15 October 2018 11:31 am - 14 - {{hitsCtrl.values.hits}}

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China’s Vice Finance Minister Zou Jiayi has acknowledged debt issues with some of its ‘Belt and Road’ projects, saying the government will strengthen macro-supervision on the debt sustainability aspect of its overseas investments, the Reuters reported on Saturday.

“The debt sustainability issue of Belt and Road (projects) is a complicated issue, but we will take care of it,” Zou told a panel on the sidelines of annual International Monetary Fund and World Bank meetings in Indonesia.

She said China could optimize and diversify its Belt and Road debt financing with more foreign direct investment, public-private partnerships, and equity investment, as opposed to commercial loans that could be more expensive.

However, the Reuters reported that the initiative has been met with growing scepticism as some countries, such as Sri Lanka, became saddled with debt that they had difficulty in repaying.

One of the top recipients of China’s largesse, Malaysia, has recently stopped work on a $20 billion rail link between its east and west coasts, a rare setback for the Belt and Road initiative.

Zou said the Chinese government fully respects Malaysia’s decision-making and judgment, stressing the projects were inked on a commercial basis, and countries are free to vet and evaluate the terms of the projects.

“Malaysia adequately communicated with the China side on the issue. We respect Malaysia’s decision based on their debt sustainability analysis,” she said.

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Comments - 14

AVIC INTERANTIONAL Monday, 15 October 2018 11:39 AM

We were in the past respected China as a friendly nation,however ,now I feel that China is a wolf in sheep clothing .For me,Japan is the only nation who can be trusted,USSR was

Jude Monday, 15 October 2018 11:57 AM

Hey Avic, YOU want sometimes who breed terorist then breast feed terrorist and spoon feed terrorist in most part of the world!! And making billions of MONEY from terrorism moreover, wants terrorism as a going concern because they benefit most out of terrorism!! And your company want these people to dominate next 200 years!!?? Ahhh get real !!!

Too bad Monday, 15 October 2018 01:40 PM

Free money, Japan. Loan, China. I understand your logic. You want no strings attached free money aid, not loan.

Lord Wolfstein Monday, 15 October 2018 05:45 PM

Dear Jude. It seems you have a terrorist complex still 9 years after the war has finished. Please do not forget that China is a merciless dictatorship with the highest execution rate worldwide. The Chinese government and the Communist Party are worse than terrorists.

IVJ Monday, 15 October 2018 11:41 AM

Good try and am sure SL will run right into the trap over and over again.

Mandy Monday, 15 October 2018 11:51 AM

It was a simple trap baited with huge commissions into which SL just walked in because of greed for the jam that oozed.

Ali Baba Monday, 15 October 2018 01:34 PM

Yes, if Ali Baba and The Forty Thieves come back our debt levels will triple!

Jude Monday, 15 October 2018 11:45 AM

China is driven by setbacks!!! They're on a mission to succeed with the OBOR initiative!!! Any obstacles they treat them as challenges!!! China's march towards to be the global powerhouse is unstoppable!!!

kudda Monday, 15 October 2018 01:36 PM

As long as China offers any loans, our corrupted rulers will accept. Finally they will have half of the funds in their bank accounts overseas while poor public will have to repay the debts. We don't need any financial assistance from China. Please get out of our vicinity.

vithura Monday, 15 October 2018 02:08 PM

Let the MoRonic clan back into power and we will fall further into the Chinese loan trap. with no redemption at all! The present govt should cancel all projects that is funded by such funding.

upali Monday, 15 October 2018 04:07 PM

An african country named, MALAWI just cancelled their new international airport project with chinese funds.

Roy Monday, 15 October 2018 05:23 PM

How about giving the port for the China navy.

Reuter Monday, 15 October 2018 05:32 PM

Malaysia has just suspended amajor infrastructure project funded by China citing SL as an example that has fallen into a debt trap!

RP Monday, 15 October 2018 08:01 PM

China is a bully!They use economic loans with friendly nations and military means with smaller neighbours!So far three nations either rejected or cancelled the Chinese loan assistance.First, it was Pakistan politely rejected Chinese loan to build Diamer-Basha Dam, then Sierra Leone cancelled the Freetown Airport construction. The Aviation minister Mr. Kallon’s words - “I do have the right to take the best decision for the country”Now, Malaysia cancelled it’s East Coast Rail Link.While the whole world is waking up to Chinese exuberant high interest loan offers, MS is seeking additional $1 Billion loan from Chinese Exim bank to build rail road from Kurunegala to Habarana for his “Let’s awaken Polonnaruwa”!

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Will take care of debt issues of Belt and Road projects: China

Comments - 14

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