Photo composition showing Yuan bills over a map of Africa. Photo: Shutterstock.
African countries owe three times as much to Western banks, asset managers, and oil traders as they do to China, and are charged twice as much interest, according to a study published Monday, July 11, by UK charity Debt Justice.
Regarding the recent accusations by the West against the Asian country, regarding the crisis in Sri Lanka, the study reveals that only 12% of the continent’s external debt was owed to Chinese lenders, compared to 5% to Western private creditors, according to calculations based on World Bank data.
Interest rates charged on private loans were nearly double those on Chinese loans, while the most indebted countries were least likely to have China dominate their debt, the study found. The average interest rate on private sector loans is 5%, compared to 2.7% on loans from Chinese public and private lenders.
That is why campaigners are calling on the G7 to stop using Chinese loans as a distraction while letting their own banks, asset managers, and oil traders off the hook.
Contrary to the imperialist vision of the West, China has established trade relations with other principles, and this difference can be seen between Chinese and Western lenders.
Translation: Orinoco Tribune
OT/JRE/SL
