Japan welcomes Sri Lanka's debt restructuring efforts

Any time you borrow money, you become a SLAVE.

Pukey2July 3  09:55 pm JST

Abe234:

Nothing good ever comes from getting into debt with China. You’ll have to hand over more than just interest.

Pukey

Sri Lanka owed 10% of its debts to China. Guess who they owed another 10% to? Yes, Japan. The rest was owed to a combination of western and Japanese corporations and governments. Some countries actually borrow from China to pay off their debts because China offers lower interest rates and better deals. But don't let that ruin your biases.

dont worry it won’t ruin it because many other countries who took out loans understand that these debts come with strings attached.

China is the largest bilateral creditor to Sri Lanka, which in May 2022 became the first Asian lower-middle income country to default on its sovereign debt in two decades. Chinese loans had financed a string of large infrastructure projects, including highways, an airport and a port in the country. Sadly China is the biggest single lender to Sri Lank. 4.9 billion. It maybe 10% of what you say but that appears to be more than what they owe other countries. Individually.

ill leave a link.

https://www.reuters.com/markets/asia/sri-lankas-economic-crisis-debt-deal-with-bilateral-creditors-2024-06-26/#:~:text=SRI%20LANKA'S%20CREDITORS&text=The%20Export%2DImport%20Bank%20of,group%2C%20was%20owed%20%242.68%20billion.

China is the world's largest debt collector.

https://www.theguardian.com/world/2023/nov/06/china-worlds-biggest-debt-collector-as-poorer-nations-struggle-with-its-loans

This means three things: 1) China should receive zero international aid because it is clearly a donor country, 2) other lenders need to insist on uncovering all of the hidden China debt, and 3) an analysis needs to be done of how many countries are impoverished by China.

Abe234:

Nothing good ever comes from getting into debt with China. You’ll have to hand over more than just interest.

Sri Lanka owed 10% of its debts to China. Guess who they owed another 10% to? Yes, Japan. The rest was owed to a combination of western and Japanese corporations and governments. Some countries actually borrow from China to pay off their debts because China offers lower interest rates and better deals. But don't let that ruin your biases.

It is not only countries have this habit so do people using credit cards and borrowing over and over from banks. Blessedly, I can say I am debt free and will continue to be so by living within my means.

Nothing good ever comes from getting into debt with China. You’ll have to hand over more than just interest.

“Japan worried about Sri Lanka’s debt ;-)”

Apples and oranges. Japan overwhelmingly borrows its own money from itself. Sri Lanka borrows US$ from China.

If China, Japan or the other creditors really cared about the situation, they would let Sri Lanka repay their loans in their own currency – as Japan can do -- instead of foreign ones.

I hope it's not a case of Japanese tax-payer money being used to funnel Sri Lanka's debt and ending up in china pockets.

Corruption Perceptions Index (Transparency International) - rankings

India - 93

Maldives - 93

Nepal - 108

Sri Lanka - 115

Pakistan - 133

Bangladesh - 149

Corruption is clearly a serious regional problem.

Until corruption ends the situation in Lanka will never change for normal people.

Sri Lanka has learned a very painful lesson of the past decade or so. Be careful who you get into bed with! Can’t be a good feeling now looking for help and handouts.

Japan worried about Sri Lanka’s debt ;-)

There's nothing good coming from the debt.