2y ago

Kenya seeks more Chinese loans at 'Belt and Road' forum despite rising public debt

apnews.com

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Kenya’s President William Ruto is seeking $1 billion more in loans from China, despite rising public debt that has now reached $68 billion.
He's just trying to get to $69 billion
- Then will say "Nice!" and retire to his mansion his friends built for him from stolen public money.
- All while tankies claim the loans are money "gifted, not loaned". I couldn't convince a bunch of tankies on Twitter that Hungary will pay for the Fudan university building in Budapest, it's not built as a present by the Chinese.
  
  @ZILtoid1991 that's a really strange argument from them. I don't think the Chinese govt would dispute that it's a loan.
  I'm far from a tankie myself but I would have thought that the main thing in BRI loans' favour is it doesn't come with the condition that you have to cut health and education funding (which the IMF is infamous for). Possibly at less risk of ending up sued by Vulture funds too, though time will tell on that one.
- @HootinNHollerin eh, Kenya has a history of having to borrow money from various world powers (including US and USSR) and having to put up with their BS since the 1960s.
  Meet the new boss, same as the old boss. Right now Kenya is also similtaneously in the hole with the World Bank and having dealings with the IMF.
Quoting the total debt never makes much sense - right? Because the actual important figure is % of GDP.
Also, debt where you invest in your country is surely the best possible use - as opposed to spaffing public money to make your friends rich during Covid.
- Because the actual important figure is % of GDP.
  Even that's conditional. 50% of GDP as debt, as an example, is much more significant in a country where the GDP per capita is 2,000$, compared to 20,000$.
Got to pay for all those trees somehow!

10 comments