China “Forgives” $78 million of Cameroon’s debt After President Pleads

By Virginia Mwangi / January 24, 2019 | 7:31 am



china

China has announced that it has written off 78 million dollars from Cameroon’s debt as part of its efforts to ease economic hardship in the country.

The debt write-off was announced on Friday shortly after a meeting between President Paul Biya and Yang Jiechi, a special representative of China’s President Xi Jinping.

The 78 million dollars written off is but a drop in the ocean as Cameroon owes China 5.7 billion dollars according to figures from the Autonomous Sinking Fund, a public entity that manages Cameroon’s external debt.

The money written off was supposed to have been paid in 2018 but due to tough Economic times, Cameroon defaulted to which it’s President flew to China for the 3rd Summit of the China-Africa Cooperation in September. President Paul Biya pleaded with the Chinese Government to ease Cameroon’s debt burden.

African leaders are known for their heavy appetite in taking up loans with China availing itself as an easy lender. China’s lending to African countries has been seen to be very strategic with Africa’s immense wealth in mining and minerals

The relationship between China and Africa has always been treated with a pinch of salt and is now suspected to be manipulating Cameroon at a vulnerable moment so as to use it as the entry point to the sub-regional market.

ALSO READ: Kenya Third Biggest Borrower in Africa with Over 1 Trillion Debt to China.

Cameroon’s loans from China have been used to construct roads, dams, and hospitals.

Chinese lending to African countries has been 10 times higher than ever in the last half a decade leading to anxiety amongst Africans as the World witnessed as China took over strategic assets in countries that have defaulted in paying.

China used to lend Africa 1 billion dollars a year or less but 2012 and 2017 have seen Africa take up over 10 billion dollars in a year according to credit analysts at Moody’s.

African leaders should therefore not feel encouraged to continue taking up huge Chinese loans for they do not know what leverage the economic powerhouse has on them.

Where is Kenya?

Kenya has been named as the country at the highest risk of losing its strategic assets to China over the accumulating debt it owes Beijing by the Moody’s Investor Service.

Moody’s Investor Service, a global rating firm, has reported this in its newly-released report adding to the anxiety among Kenyans over the debt that has largely been blamed for the choking taxation of taxpayers.

The global rating firm has weighed in on the transparency of the predictability of credit implications saying that China’s response to Africa countries facing liquidity pressure has not been even or transparent.

“Countries rich in natural resources, like Angola, Zambia, and the Republic of the Congo, or with strategically important infrastructure, like ports or railways such as Kenya, are most vulnerable to the risk of losing control over important assets in negotiations with Chinese creditors,” Moody’s warned through in their report.

The report noted that Kenya, amongst such other countries, alternatively, faced the risk of being offered liquidity relief at higher resource concessions that could only diminish the value of future export earnings.

Read More on Kenya’s Probability of losing her assets here.

ALSO READ: African Countries to Accumulate More Debts through Eurobonds in 2019







More Articles From This Author







Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (334)
  • August 2020 (276)
  • September 2020 (192)
  • 2019
  • January 2019 (253)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (251)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (319)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (238)
  • June 2018 (178)
  • July 2018 (256)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (185)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950