China loans create ‘new wave of Africa debt’
By Alan Beattie in London and Eoin Callan in Washington
Published: December 7 2006 22:00 Last updated: December 7 2006 22:00
The International Monetary Fund warned on Thursday that China’s emergence as an alternative lender was creating a new wave of hidden debt in Africa as it backed its companies’ expansion overseas with increasingly aggressive lending.
Adnan Mazarei, a director at the fund, said action was needed “to avoid another round of debt accumulation” as emerging lenders such as China became an important source of funds. An IMF official said that while it was working to strengthen surveillance, the fund did not have precise numbers or details about the amounts borrowed by poor countries.
“This is a new situation,” said Martine Guerguil, an IMF official. “We have new creditors.”
A report prepared by the IMF and World Bank shows China is the largest of six new creditor nations. The others are Kuwait, Brazil, India, South Korea and Saudi Arabia. It said lending by China had risen to $5bn in 2004, double the figure 10 years earlier.
LinkHere
Published: December 7 2006 22:00 Last updated: December 7 2006 22:00
The International Monetary Fund warned on Thursday that China’s emergence as an alternative lender was creating a new wave of hidden debt in Africa as it backed its companies’ expansion overseas with increasingly aggressive lending.
Adnan Mazarei, a director at the fund, said action was needed “to avoid another round of debt accumulation” as emerging lenders such as China became an important source of funds. An IMF official said that while it was working to strengthen surveillance, the fund did not have precise numbers or details about the amounts borrowed by poor countries.
“This is a new situation,” said Martine Guerguil, an IMF official. “We have new creditors.”
A report prepared by the IMF and World Bank shows China is the largest of six new creditor nations. The others are Kuwait, Brazil, India, South Korea and Saudi Arabia. It said lending by China had risen to $5bn in 2004, double the figure 10 years earlier.
LinkHere
posted by Kangaroo Brisbane Australia at 3:13 AM
0 Comments:
Post a Comment
<< Home