China dismisses debt trap claims on its lending
- The Standard
- Kenya Finance
In case our cooperation partners face difficulties in servicing debts, China will properly address this issue through friendly consultation.
Belt and Road Initiative organisers defend the forum against debt trap claims
SEE ALSO :What Sh5.7b Google fine can do for KenyaKenya is among countries angling to reap big from the forum, with the expected signing of Sh368 billion loan for the second phase of the Standard Gauge Railway (SGR). “Through six years of hard work, the BRI has laid its groundwork and entered the stage of all-around growth; it is bearing fruit and will create more opportunities for cooperation,” Yang said of the ambitious programme aimed at connecting Asia with Africa and Europe via land and maritime networks along six corridors to accelerate regional integration and boost trade. “The opportunities come with the BRI's growing international influence, moral appeal and cooperation potential. Against the backdrop of mounting protectionism and unilateralism in the world, the BRI principle of consultation and cooperation for shared benefits has gained wide recognition. Support for the BRI is the mainstream view of the international community, and the opportunities created by BRI cooperation are widely appreciated in the global community,” he said. At the seminar marking the BRI's fifth anniversary last August, President Xi Jinping highlighted the need to move BRI cooperation toward quality development. “No one is in a better position to repudiate the so-called debt trap allegation than the BRI participants themselves. As a matter of fact, the governments, business communities and the general public of many countries that have participated in and benefited from the BRI have spoken up and debunked such groundless assertions with facts and figures,” Yang said.
SEE ALSO :Beauty from former Kibarani eyesoreDecisions made under the BRI framework, he said, whether project selection or investment and financing cooperation, are all based on full consultation among the parties and on the basis of conducting a due risk assessment and investment feasibility study. China and other 27 countries have jointly adopted the Guiding Principles on Financing the Development of the Belt and Road, which highlights the need to ensure debt sustainability in project financing. In case our cooperation partners face difficulties in servicing debts, China will properly address this issue through friendly consultation, and will never press them for debt payment. As a matter of fact, no country has got trapped in a debt crisis since its participation in the BRI. Quite on the contrary, it is through participating in BRI cooperation that many countries have got out of the trap of "no development". Kenya is a beneficiary of loans from China, having built the Standard Gauge Railway from Mombasa to Nairobi at the cost of Sh327 billion