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- เผยแพร่เมื่อ 27 ก.ย. 2024
- Sri Lanka's economic crisis continues to run out of control and the country is requesting an emergency bailout from the International Monetary Fund.
However, the major debts the country has racked up in borrowing from China are standing in the way of a bailout being agreed.
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Chinese money has flooded into many developing countries over the past few years but some claim that these loans are designed as 'debt traps'.
It's claimed that if a country can't repay then China is entitled to seize critical infrastructure such as ports and thereby strengthen it's global influence.
Others suggest that China is not in fact exploiting developing nations but their investment may facilitate more local level corruption.
Newsnight's economics editor Ben Chu went to Sri Lanka to investigate the impact of Chinese money and what implications this may have for the global cost of living crisis.
The film was produced by Scarlett Barter and filmed/ edited by Jack Garland. Production support was provided by Zaufaran Mohamed.
Newsnight is the BBC's flagship news and current affairs TV programme - with analysis, debate, exclusives, and robust interviews.
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Sri Lanka Foreign debt breakdown: Asian Development Bank 13%, China 10%, Japan 10%, World Bank 9%, India 2%, Market Borrowing 47%, Others 9%.
The portion of market borrowing,world bank and others equal to 65% , more than half, who is the largest creditor?
th-cam.com/video/U52tT5hgtSk/w-d-xo.html
@@hy54321 Some are creditors some are aggressors.
But that doesn't fit Western Histeria, and agenda.
@@hy54321 the FED.
About 45% of Sri-Lanka’s foreign debt is owed to international investors via sovereign bonds. These carry far higher interest rates than China’s loan.
China’s share of Sri-Lanka’s foreign debt is estimated to be around 12%.
Japan’s share of Sri-Lanka’s debt is 10%.
Blaming China for the incompetence of the Sri-Lankan regime is silly!
Sri-Lanka has asked the IMF for bailout 16 times in the last 52 years. This shows that Sri-Lanka has been an economic basket case for the last 50 plus years.
China did not force the Rajapaksa brothers to borrow and build vanity projects in Hambantota, such as an airport, a port, a cricket stadium and a conference center!
Check the report by the UK’s Chatham house on Hambantota Port: Debunking the Myth of Debt-trap Diplomacy.
All the problems of Sri-Lanka are made in Colombo, not in Beijing!
yeah, but china's loans are on things that are absolutely dead.
SL has long been in crisis because of IMF loan and the long war to kick out the rebels from india that wanted to steal their land. Without China’s help, SL would have long collapsed. Clearly BBC has given up hope on Ukraine’s narrative because the Russians are winning. Now BBC wants to shift and create a new conflict with China. The world isn’t stupid. We know how BBC works
@@ursodermatt8809 China’s investment is the only thing that is making money in SL.
@@blardymunggas6884
yeah sure
pigs will fly
@@blardymunggas6884
we know how the chinese bots work and you are one of them. unmistakably.
why western media always played up china ambition of expanding their influences and obtained strategic locations in the region and they never touch on how US and their UK alliances (Aus NZL) placing their strategic armouring around the region?
Only western people have the right to this planets resources and if you don’t need to rely on them you have got to be evil and bad
Because they are jealous and are not happy to see an Asian country become the biggest superpower.
Because China is cancer
Because they are the world police and you have to accept it if you are not a “commie”
The West will not help those who cannot benefit them. If Sri Lanka has oil, it will be a different story.
80% of Sri Lanka foreign debts come from the West. But yeah, blame China
BBC usual style. Only when creditor is UK, then it is Sri Lanka fault. 😁🤣😁
But no western country has taken away territory of Sri Lanka or behaved in devious way like China ,
not entered in non viable loaning projects line China
Not done with kick backs & corruptions
Like China
THAT IS BIG AND ONLY DIFFERENCE
VIS A VIS CHINA & WESTERN DEMOCRACY
@@maheshthakur3741 you got manuplated
The West isn't trying to build military bases on Sri Lanka for a future war with India. China is.
debt is not the issue, small brain.
China owns 10-15percent of the debt. It’s not their debt trap it’s the IMF and western companies
8%
So many brainless people commenting on BBC sensationalised news. Lets be serious - total Chinese debt equals less than 10% of total Sri Lankan debt. A fraction of debt does not bring down a country. However, India, Japan, US, World Bank and IMF contribute more than 70% of total debt. These are western countries with institutions such as World Bank and IMF controlled by the West. If their lending practices are so pure and practical, Sri Lanka would not be in this situation This look more like Western aligned debt trap to me!
Did you even understand what the video was about? Each loan comes with conditions.
@@thorc4167 yes, thats the logic behind a loan?
It's another one of the plans to sabotage China's BRI initiatives. If the BRI succeeds, the US and the West will lose a lot of their market shares in terms of economy and influence.
Sri Lanka is just one of the victims of the Covid pandemic.
Srilanka with 'western loans' was about to become the S. Korea of Southern Asia. Once the Chinese loans started to come in it increased corruption and now the country is bankrupt. What does it say about china?
@@egegeggegeeg4789 and do you know conditions behind loans? I can't say about other countries. But as an indian i can say about mine
1) we have agreed to delay payments of loan many times if they are unable to pay.
2.) We are giving AID to them to control condition without expecting anything back while china is offering more loan to repay that loan again. And has cut off almost all things
3.) China has already taken their ports for 99 years or something because they were unable to pay.
4.)China gives loan on high rates. Sent their companies for building infrastructure. So money goes back into china. No job creation. Any delay in project by either china or country make it more costly and eventually small countries are not able to repay it. And got bankrupt. While it's not case of other countries because those loans by other countries are mainly based on to improve economy, jobs while China's loan to improve infrastructure by Chinese company so that job creation for themselves then waiting for any delay costing them high price and then take it that developed place for leese.
And if you don't beleive wait for sometime. Many countries are going to add in this list
Considering Sri Lanka’s debt to China is only 10%, why are they pushing China for a solution, shouldn’t they be concentrating on the the other 90% of debt?
Well look who's waking up!
Because the remaining 90% comes from the West 😉
China's debt has 3.3% interest rate repayable in 18 years versus Japan's 0.7% in 34 years or India's 24 years. China's share puts great stress on the country's finances.
@@Gitami source?
Another 10% coming from Japan as well!
@@user-ks3vs9cm6y don't you have Google?
No one forced the Sri Lankan government to take out these loans. It's a case of poor management, the Chinese debt is a fraction of what the country owes. The government went into this eyes wide open, they knew the terms and still accepted them. It's no one else's fault except Sri Lanka's.
Why is Chinese loan intrest so high?
Because its easy to get it compared to IMF or world bank, also it needs to be as such as it cant be repaid.
why is it necessary that a Chinese State company needs to be hired to complete a said project?
So that the money taken by the country goes back to china
Why is it a clause to lease the property to China, and not some other means ?
So that slowly they can set up a naval base, same reason why today chinese submariens are at Gwadar port , Pakistan
nobody forced the chinese to lend money. they knew exactly what they were doing.
@@jadhavnitin992000 From my respective, even if there are default for the payment of Chinese debt, but the infrastructure will be existed in Sri lanka for the improvement of local people forever. then there is a question for other 90% debts, had they help Sri lanka to improve the wellbeing of locals, if they helped, then why the life of local not improved during last decade? And the money just as ash, no anything left after they spent.
its the perfect case of sri lankas nationalist instincts esp amongst the majority who have been pushing an agenda of sinhalese buddhist just like in india the present government pushed a hindu indian agenda .. ' am afraid you only accommodate corrupt in ego centric individuals to the powere positions & then to impress the ideots who vote en masse .. they naturally have to show off with these huge projects with the idea of them & theirs being in power like forever expecting some sort of hero worship in zero's .. ' aigh ..
a whole country suffers so a few ppl can get filthy rich, Jason your an idiot and should take a college course or something, just to get the shit out from between the ears.
Yes, Sri Lanka was also a victim of British Colonial aggression
Agreed
At least srilanka was better off then
Hey cut the British colonials some slack you got tea 😀
@CHAOS but in other South Asian countries it's a different story regarding the British Colonial Aggression such as in Maldives and India and so now Pakistan and Bangladesh and they looted much of India especially West Bengal!!
Oh stfu the British has nothing to do with the stuff that is happening in my country
It’s not Always about Chinese debt trap but about Corrupted politicians in the Sri Lanka led to a bankrupt nation
The irony that Sri Lankan now will be on IMF debt(
western run organization) 😂😂
If the Sri Lankan politicians and their cronies hadn't stolen such incredible amounts of money, there would be no need for Chinese loans, help, exploitation etc. Greed and corruption are the root cause of poor peoples woes across the globe.
Greed and corruption by the Imperial Portuguese, Dutch, British empires for centuries.
Chinese help :)))))). they accepted it because they are corrupt and I will say DAMN STUPID.
And their high birth rate. Why does no one mention population, it is the elephant in the room. Imagine if the population was half of what it is - I bet they would be much better off.
@@zeldaharris6876 Go away thanos, you are drunk.
are u implying to predatory lending doesn't trap nations?
it doesn't promote corruption?
dude..wake up... that happens all over the world
This is ridiculous, Sri Lanka has more debt to the IMF and Japan. This whole Chinese debt trap diplomacy thing is pure propaganda
You clearly have no clue how debt traps work.
BIDEN COLUSION WITH CHINA
Taiwan don't belong to anyone but the people living there.
How a country were formed because the people come together for the same objective or how China were once formed by unification of 8 Kingdom.
You cannot say Taiwan belong to China anymore, if the people don't share the same mentality and been to war.
War can unify a country or how 8 Kingdom defeated and park under the rules of emperor.
So do, how civil war seperate a country since the people don't share the same objective anymore.
China not allowed to keep instigating war till the day, they take back Taiwan after they fail to conquer the island in the 50's, during Taiwan war.
How many war, do China want to fight before could decide Taiwan fate?
And Dajjal don't want to know, what kind of agreement signed by Biden or collision with China, till the weapon deal onhold. Cos that also mean US don't have a reason to go against China, in view of Taiwan.
So China can keep oppressing Taiwan, till the day, the island park back under the mainland, by provoking war.
Remember what said by Dajjal or don't blame anyone, if one day you regret forever, ever have a life as human
(Other refer to the topic about meaning of love in my video since 8th Feeling is a science theory in book of life and don't forget Alan Walker cos Dajjal did not come alone)
3tutijutuo
The IMFs loans are for industry and economic development, not ports in areas incapable of using them properly, airports too far from population centers, etc
it’s exigent to ask BBC for facts. It should be known that they are propaganda machine for the British government.
@@TheGamerHenstrike Transportation counts,for future.
no way. been living and working there for years. very corrupt and very tricky place, nothing is what it seems to be. ruling business class are gangsters beyond anything i had ever seen. sky high myrder rate.
Yeah, its a shit country.
As a sri lankan china didnt trap sri lanka in a debt trap, im not defending china or anything but you have to ask money to give money and we can only blame mahinda rajapaksa for that not china.
For BBC , Debtor is always right, can't blame on debtor.😁😂😁 Unless of course the creditor is UK.
This kind of reporting would be more powerful if the BBC spent a proportionate amount of effort examining its own country’s global economic influence over the years. Even in this report, IMF money is presented an neutral, but only Chinese money worthy of examination for its intent and effect.
not many folk beleive bbc/mi6 now! a lot of fake news, look at the corruption at the english conservative party!
It's ok when we do it.
That’s because the interest rate is super high, short terms, collateral . IMF and other agencies have a 1 to 2 % rate with a longer term and they look at the viability of the projects they finance . On the other side it’s just encouraging corruption
Real debt trap: Sri Lanka owes vast majority to West, not China. th-cam.com/video/U52tT5hgtSk/w-d-xo.html
Sri Lanka owes more money to the IMF than they do China. The IMF forces countries to use the money up instantly on western/US companies basically. At least the Chinese puts it towards infrastructure that's gonna last them for generations. The IMF forces countries to build a dependency on the west
Nope. China debts is only minority of sri lanka debts. In fact west hold much more sl debts
yes, blame the english. it is their fault!
@@ursodermatt8809 of course they will not blame themselves, they don't want to dirty there image so they will just blame china... greedy west
@@ursodermatt8809 British, American and German banks together hold like 53% of Sri Lanka's debt.
@@johnathanflores7750
I am not sure your numbers are correct. It is not even sure what China lent Sri Lanka
propoganda, imf owns 90% of the debt, more scapegoating
But at least IMF doesn't demand Sri Lanka to lend their port for 99 years because of debt.
BIDEN COLUSION WITH CHINA
Taiwan don't belong to anyone but the people living there.
How a country were formed because the people come together for the same objective or how China were once formed by unification of 8 Kingdom.
You cannot say Taiwan belong to China anymore, if the people don't share the same mentality and been to war.
War can unify a country or how 8 Kingdom defeated and park under the rules of emperor.
So do, how civil war seperate a country since the people don't share the same objective anymore.
China not allowed to keep instigating war till the day, they take back Taiwan after they fail to conquer the island in the 50's, during Taiwan war.
How many war, do China want to fight before could decide Taiwan fate?
And Dajjal don't want to know, what kind of agreement signed by Biden or collision with China, till the weapon deal onhold. Cos that also mean US don't have a reason to go against China, in view of Taiwan.
So China can keep oppressing Taiwan, till the day, the island park back under the mainland, by provoking war.
Remember what said by Dajjal or don't blame anyone, if one day you regret forever, ever have a life as human
(Other refer to the topic about meaning of love in my video since 8th Feeling is a science theory in book of life and don't forget Alan Walker cos Dajjal did not come alone)
3tutijutuo
@@doha3257 China also wants you to repay the money, but you don't have the money.
It seems that, compared to Western lenders, China has less prerequisites to lend money to other countries, but is keen on having a colateral shall repayments fail. This attracts countries with poor governance or management, but with good collaterals to back up loans.
Chinese creditors are keen in getting repaid on time and in full- if something fails, they will take action to be sure their losses are minimal.
It can be a way to control a country - but other countries are also working in the same direction - India’s emergency support to Sri Lanka is not selfless, and an IMF’s bailout will come with requirements that will make the country more open to global investment- ultimately allowing global investors to profit from that country.
China wouldn't even care about BLM
ok
Always read their fineprint...
And FYI, this land grab has been a huge bankster plot, for years... #TheGreatReset
Yeah, because Greece was in a good place repay its Western debts…
Of course it is not self less. Imagine having a country like Afghanistan sharing a border with your country. You would be worried about your family every single day as you leave for work. An unstable neighbourhood will always cause trouble.
corruption is the root of all these problems.
While it is true that China owns around 10% of sri Lanka's debt, Japan also owns around 10% of ari Lanka's debt. Asian development bank owns around 13% of sri Lanka's debt. I don't get why china is portrayed as the scapegoat of sri Lanka defaulting and them not being able to pay their loans ...
if your friend forces you to take a loan when you already have big loans , you blame that friend, who made you go over your purchasing edge, not the original loans which you took because it was within limits.
Pure propaganda
@@chaitanyak.n.4768 You should first blame yourself for getting into loans that you know you couldn't afford lol instead of pushing the blame to your friend. Stop treating the SL govt as if it is a child. The SL govt has agency and they entered into the loans with their eyes wide open.
China loan term and condition are very tough nad non negotiable that is why
When the U.S gives a loan, we'll collect through temporal resources like labor or raw resources and if a payment can't be made I believe we just extend the period it can be paid and negotiate while we also refuse to give certain loans that won't allow for the country to continue turning revenue to pay for it.
When China gives a loan, it seizes land. There's no dept forgiveness, no renegotiating terms, and then if the people who once occupied the land disappear from their homes and don't show up somewhere else its another "nothing happened in ___, and these are malicious lies spread by the West to destabilize our great country"
The Sri Lanka Govt already admitted their debt problem is due to that owed to the IMF and not to China. China's debt forms only 10% of its foreign debt. Its disingenuous for BBC to yet again do another China bashing story with that headline when it never has been so.
The IMF didn't steal a Sri Lankan port, China did.
@@SelfProclaimedEmperorMany countries borrow from China but news channel like this always spotlight on a failed one particularly when China has a link. You obviously do not kmow now wtf you are talking about, just parroting the same craps from these biased news sources.. Besides, that port wasn't stolen.
@@SelfProclaimedEmperor Could it be that China moved the port directly to China? Isn’t this port still in Sri Lanka? Sri Lanka has no ability to develop itself. China helps development and promotes the economy, and China is not obliged to help any country. It is a win-win cooperation. Western countries account for the largest proportion of Sri Lanka's foreign debt. US bond investors are suing the Sri Lankan government recently, demanding repayment of the debt. Why don't you blame these Western countries?
Pure bull.
If the west cared so much, why not forgive Sri Lankas debt? Afterall, they own 90% of it...
yes, can you send me some of your money?
i really need it.
To blame the lender(in this case China) for countries miss-management of money is hilarious....The main problem has to be government corruption and the need of systemic reform. I worked with many Tamil(and some Sinhalese) people in the past that were hard working and good people...
china funded many failed white elephant projects all over the world. Unlike western investment which is not only more efficient and profitable the chinese gave loan to the betterment of the country but for the ego of a corrupt leader like Rajapaksa.
Blaming china for sri lanka's problem is perfectly reasonable.
While I agree to a certain extent, it was fairly obvious that deals were made with corrupt Sri Lankan leaders and it is widely assumed that the Chinese lenders will end up controlling large areas of Sri Lanka (especially their ports and airports) after the government defaults. This is all going according to plan, except that COVID supply disruptions followed by Ukraine made it happen much faster and more dangerously than was expected.
Who do you think paid giant bribes to those leaders?
every single country in the 3rd world (so maybe 130-140 countries) if offered money would take it. If China wanted to do debt trap, they knew that politcians. Now i dont really believe in the chinese debt trap story, but expecting the government to utilise the money for efficient use is laughable.
The lender has a responsibility to make sure that the borrower is sound.
Thank you for the report. 8% of the total debt can be called a debt trap by the west.
Surprise that IMF looking at the 8% instead of the 92 %. Something is wrong with mathematics taught in the West today. IMF needs to send their decision maker to India to learn Mathematics.
@FoulPrinceRomero that’s because China is the only country willing and able to lend them that in the first place. If the West is so concerned about a third-world county borrowing heavily from China then why don’t they step in and do something about it, instead of just expecting a country to sit there and let themselves run out of money because someone else doesn’t like it.
West wants sri lanka to starve
@FoulPrinceRomero 8 % is the biggest lender and that is debt trap. 92 % balance is what ?
Get your mathematics correct please.
@FoulPrince,
% of Sri lankan debit:
West contries: 47%,
Asian development bank: 13%,
Japan: 10%,
China: 10%,
World bank: 9%,
India: 2%,
Others 9%.
percentage of Sri lankan debit:
West contries: 47%,
Asian development bank: 13%,
Japan: 10%,
China: 10%,
World bank: 9%,
India: 2%,
Others 9%.
All the contries should cut or extend the payback for the debits.
We posted the same info. LOL
No,no,no, that 10% is the main controller.
Typical BBC news for you .
Asian development bank is also mainly own by Japan and USA. West alliance total combined of 70% of Sri Lanka debts, Now who is setting up debt trap now? typical west, in reality it’s always them behind the scene, because them own 90% of main stream medias, them pinned blame on other countries.
@@petercn8989 China employs main land Chinese to construct the projects and they get to take over the port when they don’t pay. They knew they couldn’t pay it back when they made the loan. You think China does this for free ???
@@mylet2658 Them only hire technicians from mainland,rest are the local worker, China loan is tangible, local can see it , touch it , feel it and benefits from it. In the long run them will need it anyway. Plus the port is leased to China, it sovereignty still belong to to Sri Lanka, them still have power over it. Anybody with this money can purchase more land and leased for much longer times. China is actually being kind in this scenario. At the end of day Sri Lanka get a advance port back for free. And all it offer is a empty waste land, without China that empty land return empty.
What do people expect from China , erase debts for free? Isnt bank take over your house if you can paid you mortgage? But China didn’t take over , them lease it, it’s like you mortgage second house and said you can’t pay it, and the bank said no problem, we borrow it, you sit back, relax, decade later get a free house, without spending a dime.
While on other side loan from west, majority disappeared into thin air or someone’s pocket, leaving people to carry on the debts, the interest just snowballing, the whole country basically working for the creditors. FYI west owned 50 to 70% of debts, while China merely 10%. facts.
I would think it's also the gross mismanagement of the family that's governing the country. Debt traps probably only accelerated what was to come. The problem was not a clear plan for growing the country's economy except for tourism and few exports.
80% government pocket, 20% loan . Blame the citizen for not aggressive enough to change their government. Rich and politician earns
@@cirihime9479 Agree. China should be accountable for this.
It is a debt trap. Any lender has the responsibility to make sure its borrowers are able to pay the debt when due. Extending loans to currupt regimes without transparency and the oppressive government is negligence on China's side. Sri Lanka should take China to the international court and forced it to forfeit the debts.
@@sarathw5740 why the fuck are they responsible for there shit government they can't even produce rice anymore ffs
“Dynastic Rule”, Corrupted Family installed and supported by the West to serve its own needs above Sri Lankan peoples needs. “Democracy” is banded around as fair for the people by the “righteous west” who advocate it, in reality means to serve their (foreign) interests. Ask this corrupt family of traitors who have sold out Sri Lanka where they hide the wealth? The answer? UK offshore tax havens. Something the BBC fail to investigate is UK’s role in world wide poverty and acknowledge it as fact not conspiracy. After all the BBC is state run even though it’s funded by the people, which is another example of “democracy” serving not the peoples interests but powerful elites with an agenda.
Such biased claim calling debt to China as "debt trap", while 90% of Sri Lanka's external debt is owed to Western and other entities, and only 10% is owed to China. China actually builds infrastructure to back it up for its loan.
Western countries have their own national debt problems but they ain't talking about that
BBC didn’t even mention what the empire did to them
England hates China that is why there is propaganda. BBC is banned in China for biased news.
And Then China steals the infrastructure. China stole Sri Lanka's port.
@@SelfProclaimedEmperor Can you share evidence that China "stole Sri Lanka's port"?
At 10% of Sri Lanka's national debt (compared with IMF's @ almost 80%), I doubt China's is the hyped up "debt trap".
That “debt trap” model that the BBC rightfully asserts is being used by China on Sri Lanka just happens to be the same model the IMF has used for decades: extend loans that won’t be able to be repaid, then seize infrastructure. Read “Confessions of an Economic Hitman” by John Perkins for an insider’s perspective on it all.
Boss IMF interest rates are 4% while china is charging 8-11%.
@@deekshantbelwal1269 IMF intersest rates to Jamaica were 20%
@@lachh69420 I can't find it on Google...can you tell where you read this....20% interest can't be repaid.
But IMF doesn't nationalises strategical infrastructures as ports, like China does, if the country doesn't repay the loan.
Just asking, but does the U.S. take over infrastructures using these debts?
12% of the debt is from China, 38% is from the West
BBC: Is Sri Lanka a victim of Chinese 'debt traps'?
how prejudiced you are?
😀😀 typically "mainstream western media"
Source??
I wonder if the size of the debt correlates to the nature of the loan, how much more were willing to give, and how essential they are to keeping the country running?
I don't think it's prejudice, I think it's we shouldn't have been giving Sri Lanka loans before we can get a signature that it will move money to where it's needed instead of where a 1% turns the highest profit. I'm not seeing Sri Lanka losing land to the U.S, and as China knows we're far from efficient with our money requiring much more yield for everyone to maintain their quality of life
The British government no longer sees it as racist to make up stuff about China.
@@schoolofgrowthhacking lol, really? Also 12% of their debts comes from japan. You dont know how google works? Do you own little basic research.
Always surprised to see IMF and World Bank portrayed as holier than GOD
A small island living on organic food？How ridiculous！The country‘s problem should owe to the western oligarchs who fooled them to change their common food plants into the luxious organic plants. Yes organic sounds beautiful，yet in turn your poor people have to live on imported food！And when there is a war and the international food price boosted，guess what？People would be throw into property，which has little to do with China and mostly a western rooted issue. And still it has something to do with China from another perspective：China has send emergency food supply to Siri Lanka for help, though it’s still not enough to solve the complete problem,but that generous act do interfere the ABCD ,the international oligarchs of food to rob the Sri Lanka commoners ,thus they would need BBC to bark for them.
@@roxiewang8943 Overuse of chemicals has long-term effects on soil that can end with dead, useless soil. Sri Lanka is doing the right thing, but they did it far too quickly. It was, as you said, quite stupid. But "western oligarchs" do not sell food in that area of the world in large quantities, so it does not benefit them to cause this kind of disruption. That only benefits the powerful regional players like India and China.
How so? The IMF exists for this exact reason. Money is poured in from rich countries to help the poor countries looking to develop. Try to consider as an international investment committee, it isn't owned by any one country and the money given to a country is the same. The IMF will assess if the country can pay it back or not just like when some people check credit ratings for common folk before allowing mortgages on houses etc. It is a risky business to be in for both the IMF and the country seeking to borrow money.
Official data from Sri Lanka's Department of External Resources shows that at the end of April 2021, nearly 47 percent of Sri Lanka's foreign debt was owned by Western funds and banks. In addition, the Asian Development Bank owned another 13 percent while China and Japan each owned about 10 percent. Yet no one is saying anything about the "Japanese debt trap."
Indeed. The west just want to potray china as an enemy.
+5 social credit
@@Samarthjbr No argument?
BBC did not tell you 10% of Sri Lanka's debts are from China, while 10% from Japan, 9.9% from World Bank and 47% from international market.
We have to pay more for china because its interest rate is high ,
@@itsmekassa that is because China takes the risk to develop your country unlike West who give out handout to keep you poor forever.
@@jiaqichen7584 japan isn't west but they have decent intrest rate, in
My viwe of point sri lankan politicians want commission then they start over estimated white elephant project with support from chain money and yo can see another chaina take over project,chain kenw sri lanka cant pay for it but chain working for their new world oder
@@itsmekassa Japan also provided 0 interest loan to India for their high speed railway, for god sake, the rest is history but if you don't know please Google it
@@itsmekassa how much higher ? The interest rate for the 10% would have to be 9x higher for the 10% to carry the same risk as the remaining 90%. Assuming the market standard of 2-3% for sovereign debt. Will SL sign up for a loan thats charged at 18 to 27% interest rate ????
Use your brain to work out the math before you engage your mouth or keyboard 🤡 !
Darwin port in Australia, Piraeus Port in Greece and Felixstowe port in the UK are also owned by Chinese companies.
Chinese companies own fully or hold stakes in 13 major ports in Europe.
No one seems to complain about Chinese owning ports in Europe or Australia!
Apparently the whites are willing to compromise on national security for a few bucks. Their sovereignty is for sale.
When you borrow the money from bank to buy your house and when you can't afford to pay the bank eventually the bank will confiscate the property. Is that a debt trap? You are smart enough to whine about it you can figure this one out. It's all about insecurity and anti China BS.
US has >800 oversea bases. Are these acquired on leases or by conquest. Only China hater like to focus on Chinese built port which China took over on lease & manage it. Such port managed by China can attract Investors, trades &shipping lines, & help to ease unemployment issue in Sri Kanka.
@@bonnie7898
Lease is a comfortabel policy .
Debt is not .
China-operated ports raise security fears for US, NATO 2 Jun 2019
US and UK have been doing this since the dawn of time
China is trying their best to save Sri Lanka but the damage done by The West and North America is too deep and irreversible. Sad but it is what it is.
are you stupid?
Only around 10% of loans are from China, 12% from Japan so why not focus on Japan? Sure you get less views..
Because Japan didn't steal a Sri Lankan port. China did.
BBC reporting is very uneven. Western debt to Sri Lanka amounts to 5x much higher than China but never mentioned.
Did you even watch the video?
.i could really feel someone is lying even on camera. my heart goes Sri Lankan people.
Sri Lanka's government and leadership is to blame for this crisis. Can't blame the Chinese when the Sinhalese government have no idea what they're doing.
No China is responsible as a lender.
Both! Chinese did it deliberately!
@@sarathw5740 where is the rest of Western debt?
speaking of debts owed, china is defaulting on its payments, and has pretty much told the west to piss off, the last 40 years have just been a ruse to get the west technology and steal what it can and have western business build its infastructure, hope you all get washed away from flooding and landslides...what comes around goes around
UK propaganda
Now think about it, if you know that a business is going to collapse because of their incompetent employees, why would you still want to lend them money?
Why else do you think people complain that China bring it's own workers to do such projects? It's so that sticky finger politicians don't skim off the top or add bs expenses.
I would, but at a higher interest rate and some kind of guarantee to make up for the risk
Imagine if China didn't help, the west will probably scream over how China's leaving Sri Lanka to die
And that's exactly what i'm seeing right now
If there's a physical collateral which in this case, the port. Why not? It's a form of payment?
Oh…..it’s the banks fault that forces me into buying the house that now went down in value.
If the bank have not offered me the loan I would never have bought the house.
If the house price have gone up……I would be the hero to make a lot of money and I was smart to have used the bank loan.
Sri Lankan debt is due to loans from IMF n WORLD BANK.
You point yr fingers at the wrong party.
Likein Africa South America n other countries IMF n WORLD BANK made these countries in debt on n on. An endless circle of payment of interests.
The only “wrong party” here are ccp bots with “engrish “ as their main language
noo dont tell lies, trust uncle johnny
BBC, please do an exposé on how my bank has debt trapped me with their mortgage :)
👍👍 😅
😅
Hang on let me get a loan for a million dollars…. Ok I’m back. I also need debt forgiveness now please these money lenders are evil!
Based on BBC 'logical' reasoning, ONLY Chinese can debt trapped you, not your bank. ...😁😂😁
Sri Lanka has a lot of imports and has very few industries for exports except tourism to support the imports. Without the China dept traps, Sri Lanka will still have the same problems of missing foreign currency with the tourism shut down for almost 3 years. This is the key reason why the Sri Lanka government collapsed.
China funded the Hambantota port not because they loved Sri Lanka...because they wanted a port in the Indian Ocean. China would have gone for the Mattala Airport, but India beat them to it. Sri Lanka has a lot of raw materials - including oil and gas deposits and China had designs for them too. Sri Lanka was second to Japan in Asia...the Rajapaksas and Chinese debt traps changed everything.
@@troyfeltman6210 10% of Sri Lanka debt is from China , 12% from Japan & 45% from Western countries .
Western countries Debt Traps ( IMF etc .... ) are 4.5 times bigger
@@ragnarokws2670 Yes, but they are not confiscating Sri Lankan assets in response to the delayed payment. They are trying to renegotiate a different payment deal
there is not debt trap
owing most of your debt to one place is fine as long as youre allowed to build something with it so you can pay the money back. the imf and world bank dont allow for that.
anyway, here are more vids disproving the debt trap myth.
th-cam.com/video/OGGItLIKL8g/w-d-xo.html
th-cam.com/video/7gwgcIfzttA/w-d-xo.html
th-cam.com/video/_-QDEWwSkP0/w-d-xo.html
Don't worry people here like to blame China instead of Sri Lanka Leadership which is the fundamental problem at hand.
Why not talk about IMF debts?
Japan and the US invested heavily in China since 1990, so maybe China has been in debt trap for 30 years, but actually not,We Chinese appreciate the investment from Japan and USA, it is win-win to both side,China has achieved modern industrialization through hard working, Japan and USA made a lot of profit from investing in China . so your success depends on your own efforts , foreign investment should always be appreciated, foreign investment not only bring capital but also knowledge, knowledge is priceless
Of course not. China holds 10% of Sri Lankas debt, the rest belongs to the West
Why always discredit China? Sri Karan's creditor country is not only China. Isn't the reason of Sri Lanka at present caused by their own government? While you were still smearing China, China had already assisted Sri Lanka with 10000 tons of rice.
实际上除了中国之外，也没有其他国家愿意投资基础的道路和铁路。到最后他们就会发现他们的债务依旧会违约。
90% debt from west，USA，imf，worldbank，japan.it's not trap
10% debt from China,Yes,it's trap
@@waitwhat3547 Do Sri Lankans need to repay debts to IMF and Western banks for loans to buy food and oil? The IMF and western economic organizations induced the Sri Lankan people to maintain long-term bad consumer spending through borrowing, which is the root cause of Sri Lanka's debt crisis. If a country cannot achieve good fiscal revenue and expenditure through its own development, it will inevitably lead to a national crisis. When the imported food and fuel are used up, the Sri Lankan people have nothing except the debts that cannot be repaid. Is this what you expect?
By investing in highways, airports and ports, materials and personnel can flow freely within the country, making it easier for farmers and agricultural products to reach cities, and fundamentally promoting the free development of Commerce and industry. Instead of enticing poor farmers to borrow money to buy expensive consumer goods and then let them go bankrupt, your loan behavior is not really trying to help Sri Lanka. I'm really ashamed of your behavior.
China is like a Global Bank and Investor. They do not need to interfere with how and what you do with the money you borrow from them. You just need to be able to pay them back. And chances are, you won't because most borrows have no money in the 1st place, just like Malaysia who borrowed billions from the IMF only to find herself in huge debt. Only difference is when you owe the IMF, they force sanctions or austerity measures on you in return for their 'bailout', China just takes over what you owe them.
Hello, malaysian here.
Our country did not borrow from imf.
That was indonesia. They borrowed usd 43 billion in oct 1997 during the asian financial crisis.
Then malaysia's Prime Minister , Tun Dr Mahathir famously refused to do so and instead implemented capital controls.
The other Asean nation to borrow from IMF was thailand.
Get yr facts straight.
@@alyahamzah1952 Enlighten us then, where the billions of dollars for Malaysia suddenly came from since Malaysia did not have a sovereign fund to begin with. The ones embezzled in the 1MDB. Balls jammed? LOL.
Its 100 % true that China's debt trap policy is the main cause of the present bankrupt situation in Sri Lanka. Before providing any loan, China wld already have corrupted its leader with bribery. The debt trap then becomes easier. Many countries will suffer the same fate of Sri Lanka. The only way out for such countries is to freeze n nationalise all China "investments" n treat them as null n void.
Sri Lanka debt( source DW news)
China=10%
India=2%
Japan=10%
World Bank=9%
Market Borrowing=47%
Other=9%
Asian development Bank=13%
China didn't cause the crisis nor did any other lenders in this group. It was the failure of the government of Sri Lanka.
One area where China is at fault is, China loaned the money to a government which didn't know how to handle it's finances. But this isn't just China's fault, all the countries included in the list above is at fault.
Excluding India. India is very responsible when it loans money.
Shhh they don't want to know the true , blaming China is the only way to look somewhere
This is what the USA (via IMF) does (for example, look up what USA did to Jamaica).
Not China. China helped so many countries and their people come out of poverty. Look up the stats.
Every few weeks or so pathetic MSMs like BBC will republish a propaganda, this one was already debunked by Deborah Brautigam some 10 years ago.
Remember Iraq? Remember Saville the BBC paedo?
BBC did the same, no one should ever trust the BBC ever again.
Never heard of force to borrow money… at least no one passed me the money before.
In reality,malaysia is even more bankrupt than Sri Lanka.just that we the urban people got more saving to sustain the situation.
The very short answer to this question is no. This whole 'Chinese debt trap' narrative is getting old and attempting to pin Sri Lanka's problems on a country that barely holds 10% of its foreign debt is quite ridiculous. Sri Lanka's issues are down to the mismanagement by the government there and nothing else.
+10 Social credit points
@@santokun5835 What??
Not mismanagement but more so due to greed.
In the first place, it's Sri Lanka 's fault to rely on China. They have already decided to borrow from China, so good luck.
The leaders decided to borrow from China. And the reason is because if China gives them $100M for a stadium, they will get at least $10M of that. If the stadium fails, if the country defaults, they do not care, they just made $10M. Paying bribes is a staple of Chinese business. And when a western company and a Chinese company are both trying to get the rights to develop some natural resource, you can bet the Chinese company will get the rights because they will bribe whoever is making the decision. Sometimes US companies feel they are forced to pay the bribes to compete, and the US finds out and comes down on the company and people, charging them criminally. But in China, it is accepted as a normal business practice.
@@jiminauburn5073 just force them onto opiates that’s the best way to a good fair deal
@@jiminauburn5073 nobody is a saint in the business world. Even western companies bribe officials. That's obviously a fact. They even have legal bribery called lobbying.
@@paulskiye6930 bribing is not a standard business practice in the west. And those caught are prosecuted. We actually have laws in the US where if I was to offer a bribe to someone ANYWHERE in the world, I would be arrested and tried if they found out. I have worked with factories all over Asia, and the US. The only ones asking me what my kickback percentage should be are the Chinese factories. None in Vietnam, Indonesia, Malaysia, SriLanka, India, Singapore, or Thailand. But pretty much EVERY one of the factories in China.
@@jiminauburn5073 😂😂
5:45 wtf why should Chinese loan be "reported" to IMF?
The reason the countries borrow from China is because China offers the desired projects at a cheaper price.
It is as simple as that.
Well that’s how the world works is that blame something else other then selves…
This news is daam true💔
Srilanka going down💔
Its very hard to live here💔
No fules. Electricity cuts.
Schools also close.
We gona fight to take our country back❤️
A debt becomes a trap if one doesn't know how to pay.
The real question to ask is ,are countries Worldwide a Victim of the Fed Reserve , ECB, IMF Money Printing …. ??
wow, another 'china bad' story, what a surprise😅
Russia is plenty bad stories and CCP defended them. What a surprise🙄
@@markus8143 In what way?
This is the new way of war.. To fight by not fighting just drown your enemies to debt and it's a win without a loss of lives
CIA bot coming
Without loss of lives? It's the Sri Lankan people that'll die! I pray that a miracle happens in Sri Lanka and they are OK. They are such lovely people and I fear for them especially with the hardships they're facing. You clearly don't have a heart!
Your pfp, paired with comment. Lol
@@kingjager8662 You must really have a low op is the U.S if you see that PFP and comment and think that's a paid CIA actor. That would barely higher then Russian bot level
@@WhatHappenedIn-vt3vq Oh, typical double standard. This guy attack everything China did. That's what CIA does.
This guy is in for a treat when he hears about the IMF…
Goddamn it. Hambantota port once docked a chinese nuclear submarine. How can u say its not strategic?
Sri Lanka needs such PPP projects to develop its econmic strategic locations, All the countries need to support SL to do this kind of developement projects. Welcome all other countries to start good PPP projects in SL as it is located at an econmic strategic location in the world business map.
The irony that Sri Lankan now will be on IMF debt(
western run organization) 😂😂
Shame on you, BBC
At least this is an honest report. One can't pinpoint the failing of Sri Lanka's economy as the result of Chinese loans. If anything, it is my guess that the Chinese have not expected the lack of willingness of many countries to put in '' hard work'', as the Chinese ambassador called it. Chinese are commited to working hard to improve their situation. They have this ''Confusianism'' approach to life. Many other people do not. They like to take it easy. And of course, corruption is a major problem. Too often, there is not communal thinking amongst those in key-positions in debt-ridden countries...
Sri Lanka's total Debt is 51 Billion USD. The Chinese debt is 10 Billion USD. So how can it be a Chinese Debt Trap when the rest of the Debt is due to the World Bank & ADB?
In Kenya they built a rail line across the country , no one has seen the contract for the contraction
In one word, NO !
China provided low interest loans for national infrastructure development; infrastructure that generates self-sustaining income to pay off those loans!
On the other hand, the accumulated burden of Consumption Loans taken from Western Banks at high interest rates is what is sinking Sri Lanka.
China's global enemies want to demonize China, but China was almost the only friend Sri Lanka, and other developjng nations across the world, had to get big low interest loans for national infrastructure development.
The West and India demonizes China in their own self-interest!
We, the people of poor developing nations, don't share that jaundiced view of China's enemies broadcasting videos like this one !
you sound like a loan shark, so what happens when Sri Lanka jsut outright refuses to pay against its debt, will china send big loui down to break legs?
@@edlubitz2968 like any lender, they will sitdown together and find way to repay the loan?
What do you think nation is lol?
It would have been so easy to see upon meeting the family running Sri Lanka, at early meetings, that the Chinese could manipulate the Sri Lankan leaders.
Full of guess work?
@@justnow5809
no, it is what the chinese are doing. they did the same in malaysia.
Sri Lanka owe more money to the world Bank and Japan than they do to China. These are facts. In addition the Chinese have left infrastructure that will eventually be assets to the economy. Other countries have left nothing in return other than the debt.
Stupid BBC, get educated for ones. Sri Lank owes Japan the same amount of money so why don't you say Sri Lanka is another victim of Japanese lending? The fact of the matter is most of the money owed by Sri Lanka is to European and American financial institutions.
😠 Fuk British Bulldog what you saying here th-cam.com/video/jScZkRHtm_U/w-d-xo.html
Falar com O Sr. António é como viajar no tempo, é sonhar acordado, é uma lição de
Its not a single factor that led to this economic mess in Sri Lanka; the lowering of taxes, covid-19, reduction in tourist income, chinese debt. driven unsustainable projects, sudden shift to organic farming along with swindling of money by the politicians etc.
When u take a loan first it looks like luxury
Slowly it turns into a burden
It is rather shameful that BBC does not mention the proportion of loan purely from China is only about 10%. ADB, Japan, India and others hold a big junk of the outstanding loans. BBC ought to have mentioned about the huge impact of prolonged Covid-19 on Sri Lanka’s tourism industry (Sri Lanka’s significant source of revenue), the Ukraine conflict, rampant corruption, and mismanagement of funds. It is most unfair to blame India, Japan, China or any foreign investors for Sri Lanka’s misfortune and partially self-created problems.
Chinese loans are no different to any other loans. It is up to SL politicians to decide how to use them. SL problem is the corruption at highest level in the government.
"China debt-trap" is s myth. China lending is only 10% of the total debt of Sri Lanka. Kick- backs to be blamed for reckless borrowing to build useless projects. The port was given to the Chinese to pay for the 90% of debt as well.
Don't blame China, blame the government of Sri Lanka for taking such debt.
Yes. Yes, they are. 😢
They should ask for money from western countries to develop.
You should do your own research before commenting this. 90% of Sri Lanka’s debt is owed to western and other entities, they owe only 10% to China.
@@phillip76 western loan agreements are very transparent hence it becomes difficult for corrupt officials and politicians to swindle those loan money. While the Chinese loan agreements are very opaque.
@@Bruh-og8rb
That is more a style of doing business. China is not trying to do pr, and with Chinese loans, there is high interest and conditions preventing from write off.
@@Bruh-og8rb so it's not China is actually trying to curry favour with the elites, and not trying to debt trap thdm
China accounts for 10% of Sri Lanka's debt so how could Sri Lanka be a victim of Chinese debt traps? If anything at all, Sri Lanka is a victim of the Asian Development Bank and Japan. These two own most of Sri Lanka's debt.
Sri Lanka as Chinese debt is less than 10%., And the Chinese portion in its yearly payment is only 2.4%
The driving fact of Sri Lanka as debt is due to high ISB , and its debt to Europe with a high interest of 6.9%, .
In 2021, Srilanka needed to pay almost 2 billion(1 b Principle, and 1 b interest) to EU. This is the highest , 47.5% of its debt payment in 2021.
It is funny calling majority of Chinese debt with 2 or 3% interest a "trap"
Meanwhile all the EU and American aid to Ukraine are actually debt with 8% interest. The west like to setup black holes and twist facts.
No. There is another video on TH-cam that explaining this matter in more detail.
No one knows much about cruelty and dishonesty of China than Sri Lanka
ok ok then loan western money to pay "bad" Chinese, why not? lol?
How is this a trap, if you don’t agree with the terms you can simply borrow the money elsewhere or simply don’t borrow.
This is like defaulting on your mortgage and complaining about foreclosure…
You guys keep blaming China to be the main reason of this crisis, meanwhile Chinese never forced Sri Lanka to take out these loans. It's just doesn't make sense at all... apparently, you guys have to be smarter on choosing people that suitable enough to occupy the position in the government.
I love seeing how BBC propagate things, it is like a nature. An always organic things BBC would do. Congratulations! IMF is always as beautiful as it could be.
Did you even watch the report? The news reporter said from what he can tell he doesn’t see any Chinese debt trap from what he investigated so far and that the situation seems to be more of a white elephant scenario. He even interviewed with Chinese officials for their position on this topic and included it in the report.
ur brain is made in china...so fake
That Chinese official really struggled to get out all that bullshit.
😠 Fuk JM what you saying here th-cam.com/video/jScZkRHtm_U/w-d-xo.html
Falar com O Sr. António é como viajar no tempo, é sonhar acordado, é uma lição de
Corruption bankrupted siri lanka not chinese debt
What did the 90% sri Lanka's debt from usa, West, imf, Japanese etc built? Nothing but trap.
at least 10% loan from China provided for country's development like hospital, stadium. It's upto sri Lanka to manage it wisely.
To all those saying that it's mismanagement and that China's share is just 10 %
This ignores the fact that debt from sources like IMF etc. is productive and ends up repaying itself while chinese debt is just burden.
Secondly on mismanagement, yes sri lanka should not have gone into the chinese debt because it's not productive.
But having taken the loan there was no scope for mismanagement as no amount of management could have made those unviable projects viable.
As for naval interference in hambantota, China is not going to abide by agreements on paper when the government is weak enough like now. Chinese also controls negotiations in these countries due to these devts as well.
Narrative that China didn't engineer this situation is farcical. China gave burdensome loans and didn't deny white-elephant projects like other creditors, so eventually the counries were to snowball into some crisis giving the chinese an upper-hand.
This documentary seems to subtly hide these things under an overarching narrative. Kinda like chinese propaganda from a biased dude.
Lol 0 facts. Which IMF loan was productive? Most Western IMF and World Bank loans are not economic-centred, but political-centred. To assist a 'democratic' government's development for any that are Western aligned.
China's INFRASTRUCTURE project are literally investments for now and the future. You can't have Foreign direct investments without roads first, without utilities first, without ports first.
'No amount of management could have made those projects viable'. Hmm a 3% interest rate, thats a 3% hurdle rate. Most infrastructure projects around the world have negative ROI because u invest billions in a highspeed train for the INDIRECT economic outcomes, and not the ticket fees which would take u centuries to pay off the train + railway tracks being laid.
Burdensome loans? Wasn't China one of the firsst nations to restructure Sri Lanka's debt when they were on the brink of default? Which western nation did that? None.
So what are the other 90% loans from other nations, if China only did unsustainable loans? Come explain what those 90% did. LOL
What about the World Bank and IMF - its OK that they lock many countries into debt and cripple their economies? Is the situation in Sri Lanka unusual? And the leadership of many countries is corrupt - is that the fault of the lenders? I am very concerned about the vitriol towards China - driven by the US - and permeating the West.
1:19 oh wow the only data shown in this video is the Chinese debt as a % of GDP, without comparing to the total debt from all sources? What a blatant manipulation of presentation.
This video is misleading and false . the total number of debts by Sri Lanka to China was less than 20%, the largest lender to Sri Lanka are first international institutions, second Asia development bank. The fact is Sri Lanka collapsed due to economic slowdown and collapse in exports. The West invented dept drap and a lot of Countries in the Global South have suffered due to the the West.
How dare the BBC present the actual representation of the problem rather than blame China for everyone's problem.