1/4
According to Paul Nantulya, from the Africa Center for Strategic Studies, “China’s policy banks have grown increasingly concerned about borrowers’ ability to repay loans and grown wary about extending finance.”
scmp.com/news/china/dip… via @scmpnews
According to Paul Nantulya, from the Africa Center for Strategic Studies, “China’s policy banks have grown increasingly concerned about borrowers’ ability to repay loans and grown wary about extending finance.”
scmp.com/news/china/dip… via @scmpnews
2/4
I've long argued that the rapid expansion before 2015 of Chinese financing in developing countries had far more to do with its lack of experience than with any superior financing model, as so many claimed even 3-4 years ago.
I've long argued that the rapid expansion before 2015 of Chinese financing in developing countries had far more to do with its lack of experience than with any superior financing model, as so many claimed even 3-4 years ago.
3/4
This was nothing new. Many other countries with burgeoning trade surpluses had previously done the same thing, with similar levels of confidence and enthusiasm, and soon enough, as losses began to mount, they all retreated, as China inevitably would too.
This was nothing new. Many other countries with burgeoning trade surpluses had previously done the same thing, with similar levels of confidence and enthusiasm, and soon enough, as losses began to mount, they all retreated, as China inevitably would too.
4/4
I know many think that China's bad loans were made as part of a plot to enslave poorer countries, but I'd argue that the real cause of bad loans was bad lending practices in which risk was systematically underestimated. That is becoming less likely as China gains experience.
I know many think that China's bad loans were made as part of a plot to enslave poorer countries, but I'd argue that the real cause of bad loans was bad lending practices in which risk was systematically underestimated. That is becoming less likely as China gains experience.
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