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Kishida meets Sri Lankan president on debt restructuring

16 Comments
By Tetsushi Kajimoto

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16 Comments
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This is what modern slavery looks like, Debt then arm twisting.

2 ( +2 / -0 )

The flawed debt-trap diplomacy theory is a meme that became popular due to negativity based on anxiety about the rise of China.

Apparently not:

https://japantoday.com/category/world/%27clock-has-hit-midnight%27-china-loans-pushing-world%E2%80%99s-poorest-countries-to-brink-of-collapse

2 ( +2 / -0 )

Read some more about the secret loans China makes. The IMF and World Bank should make NO loans to a country if there is any remote possibility of there being a secret China loan that would take precedence/obscure the debt picture of the country. Perhaps there can also be clauses that double the interest rate of existing loans if secret China loans come to light.

2 ( +2 / -0 )

Restructuring Sri Lanka’s huge foreign debt is fine if the country agrees to repatriate its citizens illegally living in Japan by overstaying their visas and abusing the asylum system.

1 ( +6 / -5 )

JJE

They actually are in more debt to the collective west and Japan.

The Western debt is distinctly different. It's through private sector creditors. In a default, it's these investors who will have to take a haircut while SL could carry on although with a lowered credit rating. However, when countries like China lend to other countries, a whole set of harsh geopolitical factors can come into play, with the creditor demanding political concessions, posing serious risks to the lender's sovereignty.

Larr

I don't think it is a good idea to listen to a country whose debt to GDP is 275%.

If you read the story, it says "forgeign debt." Japan hardly has any of that, which is why it ain't going to default, or even raise its bond rates, unless it wants to.

1 ( +1 / -0 )

@TW There is already such measure from the IMF and still many countries swam to seek help from China. Pakistan is that kind of country. Many third world country just get up leave that IMF alone and talks with political friendly China. IMF or World bank were notorious with hateful attitude, it was an insult to discuss with them!

As long as it is all on China when the countries collapse. The World Food Programme will be working overtime.

1 ( +1 / -0 )

Too little, too late.

Japan should have aided these countries 35 years ago when it was awash with cash and China wasn't much different than Sri Lanka today.

0 ( +6 / -6 )

I don’t know about you folks, but I could use some debt restructuring to the tune of about $7.1 billion from the PM and IMF. Let’s meet? I’ll bring some little flags.

0 ( +0 / -0 )

@TW There is already such measure from the IMF and still many countries swam to seek help from China. Pakistan is that kind of country. Many third world country just get up leave that IMF alone and talks with political friendly China. IMF or World bank were notorious with hateful attitude, it was an insult to discuss with them!

0 ( +1 / -1 )

Kishida didn't get a chance to nip over to Sri Lanka on a trip?

Missed an omiyage opportunity there.

-2 ( +1 / -3 )

I would say a Sri Lankan diplomat in Tokyo and his assessment of his country’s loans would carry more weight than articles linked in the comment section. Go directly to the source.

-3 ( +0 / -3 )

The flawed debt-trap diplomacy theory is a meme that became popular due to negativity based on anxiety about the rise of China.

-4 ( +3 / -7 )

The BIG LIE when "debt trap" is wolf-whistled by the west about Chinese initiatives like the Belt & Road.

They actually are in more debt to the collective west and Japan. Moreover, the conditions are far less regressive. And these G7 goons have unashamedly been at it for years.

-7 ( +4 / -11 )

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