Article

2018-03-07 China-Japan-Koreas

Looming 'debt risks' threaten Belt and Road countries

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Posted by 3dc 2018-03-07 06:15|| || Front Page|| [2 views ] Top
File under: Commies

#1 It's a technique that's been used by lenders for decades: Lend a risky loan that's collateralled by a property that they want. If they get the money back, good. If they get to seize the property, better.
Where the problem will come in is when somebody doesn't want to surrender the property that backs a hinky loan after they've been paying on it for years. We're talking about people with armies here.

Posted by ed in texas 2018-03-07 10:28|| 2018-03-07 10:28|| Front Page Top

#2 so far the "belt and road" initiative is all initiative and no reality

no formal procedures have been established for designating infrastructure and industrial improvements

no board of directors or any other governing body exists to carry out what procedures will eventually be established

Posted by lord garth 2018-03-07 14:31|| 2018-03-07 14:31|| Front Page Top

#3 Given that Uncle Sam (and probably all of the debtors' neighbors) stands in the way of Chinese gunboat diplomacy, the debtor countries can just repudiate their debts, and there's nothing the Chinese can do about it. So this risk is BS, for the same reason that sovereign debtors have been able to dodge mountains of debt to Western creditors.

Posted by Zhang Fei 2018-03-07 17:32|| 2018-03-07 17:32|| Front Page Top