When Societies collapse: Kill the wealthy, rob everything you can

[TheGreatWhite]

 

[Chase]

Sri Lanka was doing very well before they borrowed Chinese money to hire Chinese to build the country.


Sri Lanka trumpets oversubscription for bonds - 2007
https://www.tamilguardian.com/content/sri-lanka-trumpets-oversubscription-bonds

Global interest in Sri Lanka's sovereign bonds suggests growing investor confidence -2017
https://oxfordbusinessgroup.com/ana...gn-bonds-suggests-growing-investor-confidence

Then..........

Sri Lanka meltdown exposes China loan policy​

https://asia.nikkei.com/Spotlight/S...wn-exposes-China-loan-policy-5-things-to-know
How do Chinese loans compare with others?

By 2020, Sri Lanka's inability to honor maturing external debts was looming. The International Monetary Fund put the island's foreign debt at $38.6 billion, or 47.6% of the central government's total debt. China's slice was 10%, as was Japan's, placing the leading bilateral lenders after the main foreign creditors, international sovereign bondholders and the Asian Development Bank.

But the cost of borrowing from China set that debt apart. Numbers crunched by Verite Research, a Colombo-based think tank, show that the interest rates on Chinese loans averaged 3.3%, versus 0.7% for Japan's. And the maturity period averaged 18 years for Chinese debt, shorter than India's 24 years and Japan's 34 years.

None of this hindered the Rajapaksas' appetite for Chinese credit, opening the door for the Asian powerhouse to fund over a third of 313 debt-funded projects in post-conflict Sri Lanka.

How did China become Sri Lanka's go-to bank?

China's deep pockets enabled it to come to Sri Lanka's rescue when Colombo needed to raise commercial loans, pushing aside the IMF as the traditional lender of last resort. By 2018, the Chinese cash flow was even tapped by the pro-Western coalition government that succeeded Mahinda's second term as president, with Wickremesinghe as premier. The China Development Bank offered a $1 billion syndicated loan on terms that Colombo found more attractive than competing bids from Western-leaning international banks: an eight-year maturity period, with a three-year grace period, at 5.25% interest.

Thereafter, China wanted to tip the scales further with an offer to buy an entire $1 billion sovereign bond issue. But the Sri Lankan government declined, preferring to go to the international capital markets "in the interest of diversity" to limit the country's exposure to Chinese creditors, a commercial banking source revealed to Nikkei Asia.

Yet the impact of COVID-19 in 2020 saw the Rajapaksas, back in power, turn to Chinese creditors for more syndicated loans. In April 2021, the China Development Bank approved a $500 million loan, the second tranche of a $1 billion bailout that Colombo had sought from Beijing in early 2020, as the economic pain from the pandemic spread.

The second tranche came with a maturity period of 10 years and a grace period of three.

How has Beijing responded to Sri Lanka's crisis?

Earlier this year, with Sri Lanka having to pay off foreign debt of $6.9 billion, President Gotabaya and Prime Minister Mahinda sought financial relief from Beijing, asking that the debt payments maturing in 2022 be restructured. The amounts owed to Chinese creditors included $119 million to the China Development Bank Corporation, $232 million to the China Development Bank and $232 million to the Export-Import Bank of China, according to estimates by the Advocata Institute, another Colombo-based think tank.

But Beijing responded with a dose of tough love to its pro-China Sri Lankan allies. In April, after Sri Lanka decided to default on its foreign payments -- a first for the country -- and seek an IMF bailout, Beijing grumbled.

 

[Pariah]

Just come here, we have plentiful food and jobs for every CECA brothers and sisters. Never mind about Sinkies becuase they can be priavte-hire driver or food delivery boy.

 

[Chase]

Sri Lanka is still buying things from Singapore, including medical supplies. Their SMEs switched to USD and INR based, they continue to import and sell in domestic money using these two currencies.

 

[laksaboy]

What happened to the grandiose project the Tiongs are undertaking in Sri Lanka? Kaput?

 

[TheGreatWhite]

 

[SBFNews]

 

[Eisenhut]

Will singkee get to hoot all the lanjiao traitors in translator led party?

 

[TheGreatWhite]

Like good old days

 

[Cottonmouth]

They should go next door fuck the Indians

 

[zhihau]

Like good old days

Confirm have wok hey!

 

[SBFNews]

Confirm have wok hey!

What happen to climate change and lower carbon emissions? Abandon?

 

[blackmondy]

Sri Lanka is no different from sinkieland. Both cuntries are run by a corrupted family and their relatives and both are at the mercy of tiongcock, albeit in different ways.

 

[Loofydralb]

Bhuddism is a peaceful religion.

 

[zhihau]

What happen to climate change and lower carbon emissions? Abandon?

Tasty food more important

 

[laksaboy]

What happen to climate change and lower carbon emissions? Abandon?

If you are worried about carbon emissions, considering eliminating your carbon footprint by committing suicide. You are breathing out CO2 every moment.

 

[Leongsam]

This is what happens without the PAP in charge.

 

[syed putra]

The rajapakse gomen cut taxes for the middle and upper classes which caused the whole country to collapse pre covid.
When covid struck, they did nothing to rectify the shortfall as didn't expect it to be so long.