The biggest regret every Kenya have over the Chinese relations is the debt which was overburdening the nation. The extent of the loan was so much that even the unborn were in the same debt hook.
On the streets whenever every person heard of Chinese , the first thing that was popping up was the debt which was so extreme to much that even some people thought they could as well buy the country.
Leading Chinese banking conglomerate, Hong Kong Mortgage Corporation (HKMC), has proposed plans to buy Africa’s debt and repackage them into securities for sale to investors.
The plan will see more than 90 firms including project developers or operators, commercial and investment banks, multilateral development financial institutions, asset owners and managers and professional service firms from Hong Kong, mainland China and overseas join as partners.
It will provide China with extra liquidity that it can loan out to finance more infrastructure projects.
This could prove to be bad luck as it could lure African countries to more debt.
“This initiative we believe will help ‘recycle’ commercial banks’ capital to be redeployed into other greenfield infrastructure projects, besides enabling wider capital markets participation in infrastructure development under the Road and Belt initiative,” said HKMC Greater China chief executive Helen Wong.
The new development comes at a time when China’s main project insurer, China Export, and Credit Insurance Corporation cast doubt on the viability of some infrastructure projects.
Regional economies owed China and its institutions more than $29.42 billion as at April 2018 in infrastructure loans.
Ethiopia leads the region with a $13.73 billion followed by Kenya at $9.8 billion.
Uganda owes $2.96 billion; Tanzania owes $2.34 billion. Rwanda, Burundi, and South Sudan owe $289 million, $99 million and $182 million respectively.
President Uhuru Kenyatta travelled to China on Saturday, November 3, to attend the inaugural China International Import Expo.
He expressed his appreciation to President Xi Jinping for initiating the process of opening up the Chinese markets to Kenya’s exports.
DO YOU THINK IS REAL DEAL TO CONSOLIDATE OUR DEBTS?