China's debt trap strategy: Uganda set to lose its only international airport to Beijing

[Viva_vietnamm]

WION Web Team
NEW DELHI Published: Nov 28, 2021, 10:03 AM(IST)

Entebbe International Airport is the main gateway to Kampala and the rest of Uganda. (Picture courtesy: entebbe-airport.com) Photograph Others )
FOLLOW US

STORY HIGHLIGHTS​

The government of Uganda has failed to modify a loan arrangement with the Chinese that had repayment restrictions that included the attachment of the country's sole international airport.
Uganda might soon join the list of countries victimised by China's famed debt trap technique.
The country's only international airport, Entebbe International Airport, is under danger of being taken over by China.


In 2015, China's Export-Import Bank (EXIM) gave Uganda $207 million at a 2% interest rate upon distribution.
The loan, which was intended for the development of Entebbe Airport, included a 20-year payback schedule and a seven-year grace period.


The government has failed to modify the loan arrangement with the Chinese that had repayment restrictions that included the attachment of the country's sole airport.
According to reports in African media, Entebbe International Airport and other Ugandan assets were attached and agreed to be taken over by Chinese lenders when the debt was arbitrated.
President Yoweri Museveni dispatched a delegation to Beijing in the hopes of renegotiating the harmful terms, the reports said.
The visit was fruitless because Chinese authorities refused to approve any changes to the deal's initial parameters.
On November 17, 2015, the Uganda government, represented at the time by the finance ministry and the Civil Aviation Authority, signed an agreement with the Export-Import Bank of China (Exim Bank) to borrow US $207 million at 2% upon disbursement, with a 20-year maturity period and a seven-year grace period.
The agreement reached with the Chinese financiers effectively "surrendered" Uganda's most important airport to China, reports said.
Some stipulations in the Financing Agreement, according to the Uganda Civil Aviation Authority (UCAA), subject Entebbe International Airport and other Ugandan assets to being attached and taken over by Chinese lenders following arbitration in Beijing.
Uganda's request to amend the loan's hazardous conditions was denied by China, putting Ugandan President Yoweri Museveni's administration in uncertainty.
The Ugandan government sacrificed international immunity in the agreements it made to acquire the loans, exposing Entebbe International Airport to takeover without international protection, according to the Daily Monitor of Uganda.
Uganda's Finance Minister, Matia Kasaija, apologised to parliament last week for the "mishandling" of the $207 million loan.

China's debt trap strategy: Uganda set to lose its only international airport to Beijing

Uganda might soon join the list of countries victimised by China's famed debt trap technique. The country's only international airport, Entebbe International Airport, is under danger of being taken over by China. In 2015, China's Export-Import Bank (EXIM) gave Uganda $207 million at a 2%...

www.wionews.com

 

[Jackdaws]

WION Web Team
NEW DELHI Published: Nov 28, 2021, 10:03 AM(IST)

Entebbe International Airport is the main gateway to Kampala and the rest of Uganda. (Picture courtesy: entebbe-airport.com) Photograph Others )
FOLLOW US

STORY HIGHLIGHTS​

The government of Uganda has failed to modify a loan arrangement with the Chinese that had repayment restrictions that included the attachment of the country's sole international airport.
Uganda might soon join the list of countries victimised by China's famed debt trap technique.
The country's only international airport, Entebbe International Airport, is under danger of being taken over by China.


In 2015, China's Export-Import Bank (EXIM) gave Uganda $207 million at a 2% interest rate upon distribution.
The loan, which was intended for the development of Entebbe Airport, included a 20-year payback schedule and a seven-year grace period.


The government has failed to modify the loan arrangement with the Chinese that had repayment restrictions that included the attachment of the country's sole airport.
According to reports in African media, Entebbe International Airport and other Ugandan assets were attached and agreed to be taken over by Chinese lenders when the debt was arbitrated.
President Yoweri Museveni dispatched a delegation to Beijing in the hopes of renegotiating the harmful terms, the reports said.
The visit was fruitless because Chinese authorities refused to approve any changes to the deal's initial parameters.
On November 17, 2015, the Uganda government, represented at the time by the finance ministry and the Civil Aviation Authority, signed an agreement with the Export-Import Bank of China (Exim Bank) to borrow US $207 million at 2% upon disbursement, with a 20-year maturity period and a seven-year grace period.
The agreement reached with the Chinese financiers effectively "surrendered" Uganda's most important airport to China, reports said.
Some stipulations in the Financing Agreement, according to the Uganda Civil Aviation Authority (UCAA), subject Entebbe International Airport and other Ugandan assets to being attached and taken over by Chinese lenders following arbitration in Beijing.
Uganda's request to amend the loan's hazardous conditions was denied by China, putting Ugandan President Yoweri Museveni's administration in uncertainty.
The Ugandan government sacrificed international immunity in the agreements it made to acquire the loans, exposing Entebbe International Airport to takeover without international protection, according to the Daily Monitor of Uganda.
Uganda's Finance Minister, Matia Kasaija, apologised to parliament last week for the "mishandling" of the $207 million loan.

China's debt trap strategy: Uganda set to lose its only international airport to Beijing

Uganda might soon join the list of countries victimised by China's famed debt trap technique. The country's only international airport, Entebbe International Airport, is under danger of being taken over by China. In 2015, China's Export-Import Bank (EXIM) gave Uganda $207 million at a 2%...

www.wionews.com

Welcome to Hotel Peking. You can get in but you can't get out.

 

[Viva_vietnamm]

Welcome to Hotel Peking. You can get in but you can't get out.

Thats why I said "Cnese has a very funny trick, when they want to defeat someone, they willing to make themselve get hurt in order to make their opponents get hurt, too...and bcs CN is bigger, stronger so they still can stand the HSR massive loss, but small countries like Indos and VN can not, so if we use CN HSR system, then we will fall into debt trap like Sri lanka and lose our lands, our ports ."

-------------------
Seven wounds fist

Seven wounds fist (七伤拳), is a martial arts martial art of the Kong Dong School, famous with the character Ta Xun in Ỷ Thien Do Long Ky.

Describe
According to Kim Dung: "This trick hits the trunk of the tree, it doesn't look like anything, but after a while the leaves gradually wither, because the inside of the wood fibers have been disintegrated, an ordinary person will just fall down."

The characteristic of Seven wounds fist is that within a world, there are seven different types of power, no two are the same. The power in the reins is soft, in the soft there's the rig, in and out, when it's strong and when it's weak, it's a hundred-dimensional illusion, it's hard for the enemy to defend against.

However, this universal martial art requires that people when starting to practice must have reached a very high level of internal gong that can lead qi to all acupuncture points, receiving and transmitting at will. If internal gong is not enough when practicing, it will harm the practitioner himself. Ta Ton after stealing and learning. But Ta Xun, eager for revenge, hastily practiced the Seven wounds fist, so his heart is damaged, and sometimes he will get mad and do not recognize people he knows. Therefore, there are very few people who dare to practice in the Khong Dong sect. In the Khong Dong sect, only the ancestor, Moc Linh Tu, is famous for being famous.

Because of the chance to cultivate into Cuu Duong Than Cong, Truong Vo Ky has a profound body, using the power of the Seven wounds fist to reach an extremely high level.

Thất Thương Quyền

Thất Thương Quyền (七伤拳), là môn quyền pháp trấn sơn của Không Động Phái, nổi tiếng cùng với nhân vật Tạ Tốn trong Ỷ Thiên Đồ Long ký. Theo Kim Dung: "chiêu này đánh vào thân cây trông thì không thấy gì, song một lát sau lá cây héo dần, vì bên trong các thớ gỗ đã bị rã rời, người bình thường chỉ...

tuhientrang.fandom.com

 

[xizhimen]

Another lie, not even worth talking about

Officials in Uganda Dismiss Report Country Could ‘Lose’ Airport to China

Reports say China could take control of country’s only international airport because of failure to honor loan agreement

www.voanews.com

 

[Viva_vietnamm]

Another lie, not even worth talking about

Officials in Uganda Dismiss Report Country Could ‘Lose’ Airport to China

Reports say China could take control of country’s only international airport because of failure to honor loan agreement

www.voanews.com

Ah, its just like Sri lanka believed they would not lose their port to CN

 

[xizhimen]

Ah, its just like Sri lanka believed they would not lose their port to CN

Happy partnership, China and Sri lanka just signed the contract last week.

China Bags Another Lucrative Port Deal in Sri Lanka

China has made further inroads in Sri Lankas maritime sector with the award of a lucrative port deal...

www.maritime-executive.com

 

[Viva_vietnamm]

Happy partnership, China and Sri lanka just signed the contract last week.

China Bags Another Lucrative Port Deal in Sri Lanka

China has made further inroads in Sri Lankas maritime sector with the award of a lucrative port deal...

www.maritime-executive.com

What can Uganda and Sri lanka export after receiving CN's loans ?? raw materials and some cheap stuff instead of Xiaomi phone, Huawei 5 G, electronic devices, EV cars ??

Seem like Uganda and Sri lanka will lose more lands, more port when loans from CN failed to help them attract more high tech factories .

 

[Zapper]

Another lie, not even worth talking about

Officials in Uganda Dismiss Report Country Could ‘Lose’ Airport to China

Reports say China could take control of country’s only international airport because of failure to honor loan agreement

www.voanews.com

Wouldn't be surprised to see corrupt officials in African countries which are ill-famed bout rampant corruption. These officials might be on chinese payroll

 

[xizhimen]

You guys can keep whining, won't change a thing on the ground.

 

[xizhimen]

¥0.05 has been deposited to your account

Regards,
CCP Propaganda Wing

Haha, this little.. since you guys do it for free, maybe I can take it

India using cyber-volunteers to silence critical voices: Report

Government invites citizen volunteers to flag ‘anti-national’ content as activists fear creation of surveillance state.

www.aljazeera.com

 

[Zapper]

Haha, this little.. since you guys do it for free, maybe I can take it

India using cyber-volunteers to silence critical voices: Report

Government invites citizen volunteers to flag ‘anti-national’ content as activists fear creation of surveillance state.

www.aljazeera.com

The irony when CCP trolls criticize about censorship in other countries

 

[xizhimen]

The irony when CCP trolls criticize about censorship in other countries

I didn't criticize you, I mean to say, good job, India.

 

[Nilgiri]

Wouldn't be surprised to see corrupt officials in African countries which are ill-famed bout rampant corruption. These officials might be on chinese payroll

It is just better if some countries (or their patrician/politician class) learn the lessons the hard way.

For example, Sri Lanka finance minister will be visiting India soon:

India - Sri Lanka Relations

Amid a severe fuel crisis,Sri lanka has asked for a 500 million dollar loan from India to pay for its crude oil purchases. This comes a few days after the Sri Lankan energy minister Udaya Gammanpila warned that the current availability of fuel will last only till january next year. Note that Sri...

defencehub.live

Their direct predicament from their bad loan policy + financial situation from usurious entity....should be redirected back to that usurious entity (simply ask them to bail you out for problem they and you created).

You will notice this usurious entity does not do "short to mid term" bailouts like IMF though. That is for their borrowers to learn why and shift long term away from.

Usury totalitarian monolith (like the loan shark thug in general) always thinks in another kind of short term (as it relates to larger population of such countries) ....that is their biggest mistake in the end too as they are unable to factor in how other (imperfect but far from totalitarian) societies work in the end.

Elements of society/govt India (and West and fellow democracies) can work with sustainably.....will all need severe reform, consultation and long term political understanding. In this (SL) case with both the corrupt family that runs the island....and also multi-partisan approach with other political entities there.

India has to understand autocrats have natural affiliation for other autocrats (big and small)....and the particular wider chauvinism force (in society) that drives the autocrats taking and retaining power....and the fact that is not driven by economics....rather economics is a consequence that type must learn from long term.

The chauvinists in all tiers often need rough lesson from larger "reality-tuned" population for forced compromise (by economic mistakes).... so India must be wise (past what scarcity of own funds already dictates) here on purse strings for our closer-relationship neighbours.

@VCheng

 

[VCheng]

The chauvinists in all tiers often need rough lesson from larger "reality-tuned" population for forced compromise (by economic mistakes).... so India must be wise (past what scarcity of own funds already dictates) here on purse strings for our closer-relationship neighbours.

@VCheng

It is not easy for any lessons to be learned when the benefits accrue to one class while the price is paid by the hoi polloi to insulate the decision makers from their follies.

 

[Nilgiri]

It is not easy for any lessons to be learned when the benefits accrue to one class while the price is paid by the hoi polloi to insulate the decision makers from their follies.

I agree it is not easy at all.

It makes the rare instances through history all the more noteworthy.....their ultimate significance of being able to rise above the fray given the inertial force of inherited context.

Take a particular Virginian for example. The British refused to give him commission in their Army...fully knowing his vertical ambition was with their army after all, rather than continued relegation to the Virginia colonial militia.

One could see their point after all (them not knowing the future) given the whole tiff he started with the French in a most unnecessary uninstructed way....among other matters they weighed against him.

The refusal however started a larger process within him, most readily applied to a growing fissure developing w.r.t the British "establishment".

Or take a young Corsican getting bullied by the French "Establishment" in his formative years....the suspicion and distaste wrought on someone a bit peculiar and different from the "mainstream".

He made certain resolutions to one day correct all of that and show them the error of their ways....the fissure of a grand revolution again helped him readily apply it further when he created and seized opportunity most others would have been content in lesser amount.

Its not easy at all...but with enough accumulated fissuring among the powerful, various pressures do build from the vertical insularity you speak of....that disenchanted elite do harness to band together, spur revolutions and self-sustain them long enough from time to time, though rare.

You dont quite know (what it all took setting, luck and recipe wise) till after its all gone down though...

I dont/cant see it in many number of countries now though (certainly a number of client states that go for the most brazen of predatory lending in full confidence of their insular structure within to promote status quo or even deterioration in the established patrician favour)....

.....but who knows what the exact level and nature of pressure needed for that rare fissure breaking point that redeems and renews.... that is for the future to show.

 

[Nilgiri]

Ah, its just like Sri lanka believed they would not lose their port to CN

Worth a read @Jackdaws et al. :

India worked for a year to get China off Lanka projects | India News - Times of India

India News: It took India almost a year to get China out of three islands off Jaffna peninsula. In January 2021, India was surprised with an announcement that the

timesofindia.indiatimes.com

It was so funny when Sri Lanka cancelled fertilizer import from PRC after it was found to be crappy (like you said about PLA sappers lol)....and then PRC responded in wolf warrior knee jerk predictable way (the PRC bank involved cancelled some loans they put for later.....further proving their low IQ response).

With CCP cringily using its "ally" even to try do its bidding:

To bolster their case, the Chinese roped in Pakistan, whose diplomats weighed in on behalf of Beijing with Colombo, including sending their press councillor on a “holiday” near the islands.

Given that "ally" now having lynched and burned to death a sri lankan factory manager....realising what's up gets lot easier for Sri Lanka.

As to true nature of both these low intellect (even anti-intellect) mob groups (be it red guard mobs, PLA genociding, Pak army genocide in East Pakistan or the terrorist mob that murders and burns pagans for whatever issue gets in their head)....

....one kisses the other with pork breath that the other must just accept it even though it has harnessed "haram" argument for its very foundation as state.

It is matter of most cringey master and slave with detritus forced both ways...but needing accomodation to ignore lol.

It is very noticeable at Porcine Detritus Forum especially.....including the porcine detritus that has spilled over here too.

"operation searchlight" and "cultural revolution" genocidal maniac complexes (air quote euphemisms and all) are made for each other....hand in glove.

Hence why they absolutely love degenerate topic spam and promotion of degeneracy there in general.

They are mentally incompetent mobs you see. Porcine Detritus is actually a gentle descriptor.

 

[Viva_vietnamm]

Worth a read @Jackdaws et al. :

India worked for a year to get China off Lanka projects | India News - Times of India

India News: It took India almost a year to get China out of three islands off Jaffna peninsula. In January 2021, India was surprised with an announcement that the

timesofindia.indiatimes.com

It was so funny when Sri Lanka cancelled fertilizer import from PRC after it was found to be crappy (like you said about PLA sappers lol)....and then PRC responded in wolf warrior knee jerk predictable way (the PRC bank involved cancelled some loans they put for later.....further proving their low IQ response).

With CCP cringily using its "ally" even to try do its bidding:

To bolster their case, the Chinese roped in Pakistan, whose diplomats weighed in on behalf of Beijing with Colombo, including sending their press councillor on a “holiday” near the islands.

Sri lanka and Uganda are slowly giving their sovereignty to CN , thats the lesson to all when borrowing money from CN.