'Gamechanger' CPEC bills for Pakistan starting to come due.

[poyzzplaidwell]

On 9/14/2021 at 11:28 PM, QuarantineTormentino said:

Absolutely. LIBOR has lost its relevance in recent years due to its susceptibility to manipulation among other factors and is being gradually phased out. SOFR/SONIA will replace it soon.

It is already getting replaced as it is a regulation now. By 2024 all banks have to move away from LIBOR. That was a massive manipulation scheme. Barclays was caught with its pants down.

[poyzzplaidwell]

On 9/14/2021 at 11:08 PM, sandeep said:

 

https://tribune.com.pk/story/2320020/talks-begin-to-roll-over-3b-cpec-debt?amp=1&__twitter_impression=true

 

 

 

Normally, when loans are given for development projects by one country to another, especially where the work is going to be done by companies from the lending country, the loan terms are super generous in terms of interest rate and payment timeframes.  But here its the opposite.  

 

4.5% on top of Libor itself is a massive rip-off.  For comparison, the Japanese gave a 'loan' for India building railway corridor, at interest rate of 0.01% - as close to zero interest as you can get, and on top of that, its a 40 year maturity with a 10 year grace period.  At that point, inflation and currency depreciation would reduce the value of the amount by what, half?  Essentially its a massively discounted loan.  Now obviously Pakistan is not India, but the point is that any time 'development' loans are part of a country to country relationship, the interest rates are nominal and discounted.  Not massively jacked up to this extent.  

 

The sheer amount of rip-off - with sovereign guarantees to pay back in USD!!! - is shameless.  34% guaranteed RoE.  That's just.......

 

And you have Pakistani patriots bragging about how wonderful the relationship with Iron Brother China is.

 

China is perfectly happy to have unstable poor states at its periphery - see North Korea for example.  Both NoKo and Pakistan are kleptocratic dictatorships who have WMD because of Chinese 'assistance', and are massively dependent on Chinese military and economic 'assistance'.  Its a model that works fine for the CCP. 

 

Question is, how bad is the shortage of semi-literate citizens in Pakistan, that they can't understand these basics?  How can they just allow themselves to be exploited and looted like this by their military overlords?  

 

 

 

 

 

 

Jab Jazba, Janoon or Islam hai to yeh kuch nahi. Mitti Kha lenge per Chinese ka sood wapis karenge.