A dozen poor countries are facing economic instability and even collapse under the weight of hundreds of billions of dollars in foreign loans, much of them from the world’s biggest and most unforgiving government lender, China.
“My view is that we have to drag them — maybe that’s an impolite word — we need to walk together,” IMF Managing Director Kristalina Georgieva said earlier this month. “Because if we don’t, there will be catastrophe for many, many countries.”
The IMF and World Bank say taking losses on their loans would rip up the traditional playbook of dealing with sovereign crises that accords them special treatment because, unlike Chinese banks, they already finance at low rates to help distressed countries get back on their feet. The Chinese foreign ministry noted, however, that the two multilateral lenders have made an exception to the rules in the past.
In effect, China had jumped to the front of the line to get paid without other lenders knowing.
Probably because their loans don't have onerous terms in social spending, which means that countries want to pay them back first so they can take out again from them.
Sucks to have competition doesn't it IMF? Boohoo my monopoly.
:rage-cry:
Probably because their loans don't have onerous terms in social spending, which means that countries want to pay them back first so they can take out again from them.
Sucks to have competition doesn't it IMF? Boohoo my monopoly.
My great grandfather once had the monopoly on all the loans in China :deeper-sadness: