[I've come to the opinion that a not insignificant chunk of China coverage that currently pops up in the Western media is an info op curated by China hawks in order to promote and exploit further polarization between the US bloc and the People's Republic of China. And some of the info ops, including the articles in the big media outlets, don't hold up under close examination.
I extracted this post from the script of a China Watch show I did a year ago. The "Hambantota debt trap" myth has served as the foundation for a year's worth of "Belt and Road" threatmongering for projects in Pakistan, Zambia, Maldives, and even Ecuador. The data concerning Sri Lanka's debt trap--and who set the trap--makes for interesting and enlightening reading. The China Watch episode of December 17, 2017 Donald Trump's China Hawk Clown College Now in Session, can be viewed by newsbud subscribers or rented via Vimeo. CH 12-26-2018]
Hambantota
is a Sinhalese expression meaning “flapdoodle peddled by China hawks and
distributed by credulous anti-PRC journos”.
The flapdoodle in question is the assertion that the Hambantota Port is
a scheme to create a debt trap against the island nation of Sri Lanka.
The case is
asserted that the PRC funds costly Belt and Road infrastructure projects the
recipient can’t afford, then takes them over as strategic assets when loan
repayments can’t be met. Case in point:
Sri Lanka, which is crushed by crippling forthcoming loan repayment obligations
equivalent to 95% of its annual revenues.
Stories in
the Western press on Sri Lanka’s debt crisis are usually illustrated by the Hambantota
Port project on the south coast of Sri Lanka.
The Sri Lankan government just finalized an agreement to lease the port,
a notorious white elephant, to the PRC on a 99 year agreement.
It looks
like there is indeed a conspiracy here: a conspiracy by the ex-president of Sri
Lanka, Mahinda Rajapaksa, to build an impregnable economic, patronage, and
political base in his rural home province on the remote southern coast of Sri
Lanka. Rajapaksa borrowed money from the
PRC to build a world class port, a world class international airport, a world
class cricket stadium, and world class highways linking the prosperous north to
impoverished Hambantota. Didn’t
work. All of these magnificent
facilities are unused and generating virtually no cash flow to pay back the
loans to the PRC.
Rajapaksa
was strongly pro-PRC thanks to the unstinting diplomatic and material support
the PRC provided him during his war of annihilation against the Tamil
insurgency. In a detail neglected by
fans of the world’s biggest democracy and current US Indo-Pacific bestie India--but rather important to our story--the
Hindu Tamil insurgency was originally supported by India, trained by India’s
Research and Analysis Wing, and, in a classic case of blowback, ended up
assassinating Indian president Rajiv Gandhi.
When
Rajapaksa needed help to crush the insurgency, he turned to the PRC, not India,
and when Rajapaksa wanted to build his follies at Hambantota, Hu Jintao—not
fearsome BRI overlord Xi Jinping—was there to help.
However, Rajapaksa
lost his bid for re-election in 2015 partly as a result of alleged Indian
finagling, and the new government had no interest in trying to make Rajaipaksa’s
hometown boondoggle turn the corner.
The whole “Hambantota
debt trap” story plays out in an interesting way.
Sri Lanka
faces a massive debt repayment burden of almost $4 billion dollars in the
coming year; but the Hambantota port and airport account for less than $200
million of that. That’s just 5% of the
total.
Most of that
obligation is now gone because the PRC took over 80% of the port in a debt for
equity swap. And under the terms of the
lease, the PRC has to make a payment of $292 million dollars immediately out of
total lease payments of $1.2 billion.
That means
that the Hambantota deal has freed up about $450 million dollars in cash for debt
service next year. Pretty sweet.
The Hambantota deal was apparently a factor in
the IMF’s decision to free up another quarter billion dollar tranche of loans on
December 7 to help Sri Lanka with its balance of payments problem.
All in all,
the Hambantota boondoggle is turning into something of a net positive for Sri
Lanka. And, if you look beyond the teeth
gnashing by China hawks, the PRC’s move is a reassuring indication to BRI
partners that the PRC will step up for refis and work outs of really crap
projects.
In addition,
India put in a bid for $300 million to operate the white elephant Rajapaksa
Airport next to the port. Vital counter
chess move to deny air terminal facilities to a potential PRC naval base? Or the price tag for staying in the political
game in Sri Lanka by providing the government with another $300 million dollar
windfall?
The other
interesting number is this: Sri Lanka’s sovereign external debt is $50
billion. Only $8 billion of that, about
16%, is held by the PRC.
Sri Lanka’s
big debt repayment headache is not the Chinese.
It’s that the Sri Lankan government sold somewhere between one to two
billion dollars of sovereign debt almost every year at near junk interest rates
for rebuilding and social peace, well, social buy offs, after the catastrophic
civil war with the Tamils.
There was
some economic growth going on but not enough to service those loans. They’re starting to mature and guess
what? Those government bonds are held by
international investors and, unlike the PRC government, those international
investors aren’t interested in delay, rescheduling, renegotiating, or conversion.
So Sri
Lanka’s in the arms of the IMF for bridge financing—linked, of course, to
demands for domestic revenue and financial reforms—so it can go back to the
international lending well again to roll over the debt it still can’t pay.
Who created
the debt trap for Sri Lanka? The usual
suspects: money center banks like Citigroup, Deutsche Bank , HSBC and Standard
Chartered and fund managers primarily in the US and Europe.
16 comments:
This article is unique and interesting. thanks for your share. I have been meaning to write something like this on my website and you have given me an idea.
Peptide Synthesis
Custom Peptide Synthesis
Wow add enthusiasm in writing articles, about enthusiasm,,so that I will get more enthusiasm. Cara Mengobati Gagal Ginjal Obat TBC Cara Menghilangkan Bruntusan Obat Cacar Air Cara Mengobati Tipes
I never imagined it would be like this in the end, everything we have been through is now gone and gone Obat Jerawat Batu Obat Liver Cara Mengatasi Kejang Demam Pada Anak Cara Mengatasi Batuk Sesak
Hey Lee you should continue writing for UNZ. !!!
I am a person who offers loans to the national. With capital that will be used to grant loans between short-term and long-term individuals ranging from $5, 000 to $500,000,000 all the serious people being in the real needs, the interest rate is 3% over the entire repayment period. I make loans Financial in all areas. I am available to satisfy my customers within 24hours, see 1 day after your application send replies to the following E-mail address: standardonlineinvestment@gmail.com
Thanks and look forward to your prompt reply.
Regards,
Muqse
Ijin share ya bro, kalau memang gak sayang kagak usah bilang cinta percuma saja akhirnya menyakitkan.. goyang asyyiiikkkk
I'm the one who keeps hugging you tightly, when you think it's possible to turn away, i'm the one who will calm the storm to stay strong you walk later
Cara Menurunkan Tekanan Darah Tinggi
Obat Tukak Lambung Alami
Cara Menyembuhkan Liver
Jual Berbagai Macam Obat Herbal
Cara Mengatasi Nyeri Dada
Obat Halitosis
Hello Friends…. Meet with a horny call girl in Nainital for Sucking, Fucking, Blowjob, Smooching, and Nude Massage & Body to Body Massage. Blowjob without safety but Service will be always with safety only. I am really staying independently alone without any disturbance in my house. If you are looking for a really independent call girl in Nainital then contact me.
escort service in Nainital
Nainital escort service
call girl in Nainital
Nainital call girl
escort service in Nainital
Nainital escort service
call girl in Nainital
Nainital call girl
escort service in Nainital # Nainital escort service # call girl in Nainital # Nainital call girl
Are you a business man or woman? Do you need funds to start up your own business? Do you need loan to settle your debt or pay off your bills or start a nice business? Do you need funds to finance your project? We Offers guaranteed loan services of any amount and to any part of the world for (Individuals, Companies, Realtor and Corporate Bodies) at our superb interest rate of 3%. For application and more information send replies to the following E-mail address: standardonlineinvestment@gmail.com
Thanks and look forward to your prompt reply.
Regards,
Muqse
nice from information, i'm very like and thank you for sharing
Tanpa Olahraga ! Inilah 10 Cara Efektif Menurunkan Berat Badan,
Do you need Personal Finance?
Business Cash Finance?
Unsecured Finance
Fast and Simple Finance?
Quick Application Process?
Finance. Services Rendered include,
*Debt Consolidation Finance
*Business Finance Services
*Personal Finance services Help
Please write back if interested with our interest rate
contact us now: (bullsindia187@gmail.com)WhatsApp or call; +918130061433
Do you need Personal Finance?
Business Cash Finance?
Unsecured Finance
Fast and Simple Finance?
Quick Application Process?
Finance. Services Rendered include,
*Debt Consolidation Finance
*Business Finance Services
*Personal Finance services Help
Please write back if interested with our interest rate
contact us now: (bullsindia187@gmail.com)WhatsApp or call; +918130061433
COLLINS GUZMAN FUNDINGS
We offer a variety of Financial packages at a very low interest rate, We stand apart from other lenders because we believe in customer service, We offer the right solution to your financial needs.In general we are FINANCE COMPANY, We offer loan at 3% interest rate, Commercial loans, business loans, home loans, car loans and debt consolidation loan are available for you. Contact us for more information via E-MAIL: collinsguzmanfundings@gmail.com
Names:
Occupation:
Loan Amount Needed:
Loan Duration:
Your Country:
Mobile NO:
Purpose Of Loan:
Email Address:
monthly income:
Sex:
Age:
Thanks and best regards
Mr Collins Guzman
WhatsApp: +1 (786) 598-8751
Treg Finance Limited deliver personal loans/business loans/trade finance/import & export loans/project loans to companies of all sizes ranging from individuals, companies and trader's globally.
*Commercial Loans.
*Personal Loans.
*Business Loans.
*Investments Loans.
*Development Loans.
*Acquisition Loans .
*Construction loans.
*Credit Card Clearance Loan
*Debt Consolidation Loan
*Project Loans And many More.
| Business Cash Loan? | Unsecured Loan | Fast and Simple Loan? | Quick Application Process? | Approvals within 24-72 Hours? | No Hidden Fees Loan? | Funding in less than 1 Week? | Get unsecured working capital? Contact us today via |Whatsapp: +44 7757-109446| |Email: info@tregfinance.net|
Treg Finance Company Limited
Website: https://www.tregfinance.net/
Email: info@tregfinance.net
Whatsapp: +44 7757-109446
Skype id: treg.finance@outlook.com
201 Bishopsgate, London, EC2M 3AE
Company Registration No. 02587815
Treg Finance Limited deliver personal loans/business loans/trade finance/import & export loans/project loans to companies of all sizes ranging from individuals, companies and trader's globally.
*Commercial Loans.
*Personal Loans.
*Business Loans.
*Investments Loans.
*Development Loans.
*Acquisition Loans .
*Construction loans.
*Credit Card Clearance Loan
*Debt Consolidation Loan
*Project Loans And many More.
| Business Cash Loan? | Unsecured Loan | Fast and Simple Loan? | Quick Application Process? | Approvals within 24-72 Hours? | No Hidden Fees Loan? | Funding in less than 1 Week? | Get unsecured working capital? Contact us today via |Whatsapp: +44 7757-109446| |Email: info@tregfinance.net|
Treg Finance Company Limited
Website: https://www.tregfinance.net/
Email: info@tregfinance.net
Whatsapp: +44 7757-109446
Skype id: treg.finance@outlook.com
201 Bishopsgate, London, EC2M 3AE
Company Registration No. 02587815
Treg Finance Limited deliver personal loans/business loans/trade finance/import & export loans/project loans to companies of all sizes ranging from individuals, companies and trader's globally.
*Commercial Loans.
*Personal Loans.
*Business Loans.
*Investments Loans.
*Development Loans.
*Acquisition Loans .
*Construction loans.
*Credit Card Clearance Loan
*Debt Consolidation Loan
*Project Loans And many More.
| Business Cash Loan? | Unsecured Loan | Fast and Simple Loan? | Quick Application Process? | Approvals within 24-72 Hours? | No Hidden Fees Loan? | Funding in less than 1 Week? | Get unsecured working capital? Contact us today via |Whatsapp: +44 7757-109446| |Email: info@tregfinance.net|
Treg Finance Company Limited
Website: https://www.tregfinance.net/
Email: info@tregfinance.net
Whatsapp: +44 7757-109446
Skype id: treg.finance@outlook.com
201 Bishopsgate, London, EC2M 3AE
Company Registration No. 02587815
Treg Finance Limited deliver personal loans/business loans/trade finance/import & export loans/project loans to companies of all sizes ranging from individuals, companies and trader's globally.
*Commercial Loans.
*Personal Loans.
*Business Loans.
*Investments Loans.
*Development Loans.
*Acquisition Loans .
*Construction loans.
*Credit Card Clearance Loan
*Debt Consolidation Loan
*Project Loans And many More.
| Business Cash Loan? | Unsecured Loan | Fast and Simple Loan? | Quick Application Process? | Approvals within 24-72 Hours? | No Hidden Fees Loan? | Funding in less than 1 Week? | Get unsecured working capital? Contact us today via |Whatsapp: +44 7757-109446| |Email: info@tregfinance.net|
Treg Finance Company Limited
Website: https://www.tregfinance.net/
Email: info@tregfinance.net
Whatsapp: +44 7757-109446
Skype id: treg.finance@outlook.com
201 Bishopsgate, London, EC2M 3AE
Company Registration No. 02587815
Post a Comment