Just Say No – China Has Sprung a Debt Trap on Many Developing Countries (Financial Times)
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According to JPMorgan, Sri Lanka, the Maldives, the Bahamas, Belize, Senegal, Rwanda, Grenada, and Ethiopia are all “at risk of reserve depletion” — aka the cash drawer is empty. Let’s not leave out Lebanon, Egypt, Pakistan, Russia, the inevitable renegotiation of Ukrainian debt, or, for that matter, the 27 countries with bonds that yield more than 10 per cent — always a sign of trouble…
Unless a debtor demonstrates a willingness and capacity for reinvention, and unless all creditors — including China and the IFIs — agree to disclose the entirety of their claims and agree to negotiate a resolution on commercial terms, any restructuring will fail. READ MORE(Non-Paywalled Article)
