7 Sept 2018
After Britain had collatarised Chinese aids and guarantees with Hong Kong for 99 years, China has gained more experience than any country on earth on the intricacies of long term collaterisation of assets.
Examples are below:
Philippines this year cancelled all Chinese aids. The president was in Isreal last week for new partnership in arms.
Malaysia canceled Chinese speed train loan contract this year and opted for a costlier Japanese electromagnetic rail. Because all Chinese grants requires collateral with state critical assets.
Singapore bluntly told China we don’t need your 25 years tenure loan at 0.5%.
Greece handed China a national asset last year on default, and European Union took measures to stop any further member country from Chinese loans.
Zimbabwe is the second African country to default and will soon hand over a national asset.
Lamu port in Kenya, which was constructed by China on a Chinese loan of $16 billion, will see Kenya default in 3 years time and the biggest port in east Africa and adjoining towns will be handed over to China for 99 years.
Kindly note that in all these loans, no single dollar cash was handed over to the countries involved. In all cases, China will execute & build the projects (as is being done in our Abuja metro line project), using Chinese materials, equipment, technicians, etc that are all imported from China.
But you owe and they patiently work underground for your default to pay back the loan, through their crafty manipulation and sabotage of your economy. After 15-25 years, they repossess your assets and now determine for the next 75 years your import rates (in case of Kenya) or rail charges (in case of Abuja Nigeria)
In Nigeria: both the current FCT minister and Governor el Rufai of Kaduna who travelled with Buhari to China a few days ago, have sent word that they will spend extra days in China to sign off such rail financing loan agreements with China.
In Zambia: see a relevant news report below:
China to take over Zambian international Airport for debt repayment default; neocolonialism?
By Richard Krah
September 6, 2018