(2 minute read)
· A new report by the Natural Resource Governance Institute, if
it is to be believed, scripts a severe warning to countries, which are
indiscriminately contracting debts without hinging on its pernicious
effect on the present and future
· The Report considered more than 50 of such loans contracted
between 2004 and 2018. It was found that the value of these loans were
worth over US$164 billion during this period more precisely on the
future
Are the African governments are becoming wary of mounting debts. A new
report by the Natural Resource Governance Institute, if it is to be
believed, scripts a severe warning to countries, which are
indiscriminately contracting debts without hinging on its pernicious
effect on the present and more precisely on the future. The report
highlights how the loans which have hidden clauses and opaque in
nature, by and large, have worked to the detriment of the people,
while it they were intended for benefiting them
The Report considered more than 50 of such loans contracted between
2004 and 2018. It was found that the value of these loans were worth
over US$164 billion during this period. Of that, 77 percent were
debts contracted from China. The supposedly beneficiary countries were
. Angola, Chad, the Republic of Congo, South Sudan and Venezuela/ The
report says that these countries, without fully realizing the nuances
of the loan, were misled and contracted loans much in excess they
could repay or absorb for productive purposes. That had led to
economic crisis, which most of them are caught up with. were mentioned
as countries with excessive debt levels, thus landing them in an
economic crisis.
