Due to China’s debt, many countries have reached the brink of default.
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Two countries Sri Lanka and Zambia have already defaulted due to Chinese debt. Lakhs of workers working in the textile sector in Pakistan have been laid off. The country is heavily in debt and foreign exchange reserves have almost dried up. For him, maintaining power supply in the country and keeping the machines running is becoming heavy. In the African country of Kenya, the government has withheld the salaries of thousands of civil service workers to save money. The President’s Chief Economic Advisor tweeted last month, ‘Salary or default. Choice is yours.
died while repaying the loan
Sri Lanka has already defaulted a year ago. Five lakh industrial jobs have been lost there. The rate of inflation has crossed 50 percent and more than half of the country’s population has become poor. Experts say that if China does not soften its stand on loans given to poor countries, many more countries will default. This includes Zambia. This country has taken huge loans from China to build dams, railways and roads. Due to this, the country’s economy got a boost, but now it is finding it difficult to pay the interest of the people. There is no money for healthcare, social services and subsidies in the country.
Earlier in such cases countries like America, Japan and France used to waive the debt. But this is not the case with China. He believes in charging every penny. This is the reason why many countries have reached the brink of ruin while repaying China’s loan. China argues that it has helped these countries in times of trouble. Also, he claims that he has waived the loans of 23 African countries. Although experts say that this loan was more than two decades old and it is only five percent of its total loan.
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