Sri Lanka feels the pain, Pak, Laos head there, Dhaka wary as China’s “debt trap” strategy unravels
ฝัง
- เผยแพร่เมื่อ 9 ส.ค. 2022
- With China's Belt and Road Initiative (BRI) in news lately with the tensions surrounding Sri Lanka’s Hambantota Port, in episode 1054 of #CutTheClutter, ThePrint Editor-in-Chief Shekhar Gupta looks at China's pattern of lending, what happens to nations which take on debts they didn't want & why is Bangladesh's Finance Minister wary about China’s ‘debt trap’ strategy.
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Sri Lanka can hostage that ship to pay some loans. Chinese would pay all their debts to save their technology 😀
.... hahah!!! SMART GUY!!!?? 5:22 .. you got some audacity to call this alcoholic, uneducated, brothel owner a mafia thug call LOTUS Kamla AKA mostofa kamal a smart man!!! .... well, what could we Bangladeshi expect from an indiaan channel like yours?? ... here's some factual history for you guys about LOTUS KAMAL Bangladesh's current finance minister who can't even count, read or write. LOTUS kamal who never went to any educational institute & used to work for a brothel to negotiate price with the customer while his mother was a prostitute & later became mistress of the infamous TAAN BAAZAAR brothel in Narayanganj 20 km south of Dhaka his father identity has been unknown as LOTUS KAMAL himself was born in a brothel which his mother used to work & he climbed his ladder up as a mafia thug by extortion, kidnapping young girls then sale them & by helping his mother to run the taan bazar brothel from very young age not to mention extortion & how much money he had lost for his drinking & gabling hobbit at the very early age. .. what could you expect from a guy who invites a prn star Sunny leonne for his grand daughter wedding(?!) .. anyway, here's a factual history for you guys ... when I was a little kid in mid 80's, I used to go the Abahoni football club in Dhanmondi, Dhaka, every late afternoon to watch football practice by international FIFA world cup players like Samir Shakir of Iraq or Roger Mila of Ca,eron & domestic stars like Salauddin, Chunnu & others as my house was right across from the Abahoni club & I was a huge fan of that club, .. sometimes I used to sneak from my house to peep inside the club late evening before dinner at around 8-9pm just to watch my favorite players what their doing. ... very often I used to find some then MP's & other people like wealthy business(??) men in their 30's getting drunk & playing cards gambling with stash of money in front of them accompanied by many half naked Bollywood or local female movie stars with them every night.. it was a ritual. .. later I came to familiar with those faces & became aware of who they are . ... one of the regular face was .. you guessed it!! .... Bangladesh's present finance minister honorable Mr. LOTUS KAMAL😁
Shekhar ji you must arrange an Off The Cuff episode with Sebastian Strangio , the wonderful Southeast Asia expert
There’s one big error fixing which would make it a better content. Padma bridge was not built with chinese loan or any loan at all. It’s financed by BD herself. The under construction Padma Rail Link ( a separate project linking Dhaka-Jessore) is financed with Chinese loan.
China has shattered the American and European dreams of implicating China in conspiracies such as Hong Kong, Corona, Xinjiang, Taiwan etc. 🤣😂Now, under the title "debt trap", brainwashing of common people of the world against China, especially the Indian and pro -West media, is being done with enthusiasm. Let's see how long this conspiracy will last.,🤔
As a Sri Lankan I thank you for your analysis. No Sri Lankan journalist does this kind of analysis.
Hi Anuja,
So glad to hear you liked the analysis. Thanks for tuning in.
As Few Indian making harsh comments about SriLanka ,They are misguided, Srilankans are our brothers , hope your economy will get normal soon. God bless you are.
@@gajendrapatil1762 nhi ye toh ehshaan faramosh hai. we hv to tolerate them.
👍
Then..How do u like the phrase "hamari billi, hamse miaon"
I never thought that I could "survive" watching this really lengthy video by a foreign chanel. This proves that this content is really interesting and very informative or spot-on. A new subscriber here from Philippines .
Me too, this guy is super in his explanations.
Welcome pinay 😅
My online friend is a filipina. 🥰🥰🥰
@@GiggityGig great! Thanx
Another issue with the BRI or Chinese loans is that they always use Chinese companies to build the projects and bring Chinese workers who get paid in Chinese Yuan. Basically, almost all the money ends up back in China and Chinese banks are holding most of the loan money NOT the borrower. They do use some local labor but only for unskilled jobs and to top this off the Chinese even import a majority of building materials needed for the jobs from China again helping the Chinese economy. So, the interest is around 4-6%, has to be paid back in 10-15 years far faster then any other and the people of said country are kept in the dark as the CCP demand nondisclosure clause on terms and conditions. Assets are taken in many cases if a country defaults. Yet, somehow some people still claim the Chinese are just "helping" yet they will demand payment or collateral if countries default no matter what. I hope the government of India is watching closely as China is trying to build a string of pearls to keep India encircled by sea. Allowing a Chinese spy ship to dock would be a mistake in my opinion. Also, in Africa the CCP has started buying radio and media stations to influence and change opinion on such matters.
Well put
Sonia Gandhi has signed a secret non-disclosure agreement with CCP. The agreement is between CCP and Congress Party. Modi is aware of it. China is expected to split into three or more countries. China made a mistake in attacking our soldiers in Galwan. There will be payback.
on point!
Basically creating employment for their own people 😂 whose salary paid by a foreign country.
@@ThunderLightStrikes Exactly, to keep Chinese employed and China's GDP moving but with another countries potencial future. It also has a side benefit of those countries being indebted to China which in turn gives them power or influence over those countries.
Recall the start of the BRI, then named as OBOR. And how the CCP were wooing India.
And when India cited this exact problem, how they insulted our decision as being myopic.
I guess India has the last laugh.
Unfortunately China still has the last laugh. The string of pearls is becoming water tight by the day!
@@mightykafir8337 asli naam se aa abdul
@@mightykafir8337 string of Pearls is possible to contain only until India doesnt have enough economic and military firepower.. Look how mighty usa is mute infront of Russia in ukraine or China in Taiwan.. Once India become bit more powerful, somewhat close to 7-8 trillion dollar gdp, Indian Navy/airforce/missile force could be too big for Chinese to just handle. Moreover, India could then punish the maladives, srilanka etc destabilising their economy with military drills causing indirect blockade, create coups and using economic clout to shoo away investors etc. Right now, we are collectively a big gdp, but still a poor country.
@@mightykafir8337 lol... Enjoy your 50c you shill.
Better withdraw it before the bank freezes your account.
Loved the phrase, “Hope is not a plan” :-)
I want to personally thank shekhar sir for doing so much research everyday. It is my daily ritual to eagerly wait for CTC and watch it fully. I do miss CTC on weekends and watch national interest & headlines shekhar k saath.
Sir you are a asset to Indian journalism and the country in fact. Keep doing the great work. We will always support you 😊
Thank his associates for research.
Another problem with Chinese debt that Mr Gupta missed, probably because it's not covered in media so much but I had seen in Kenya, is additional condition of using only Chinese companies and personal for the.project. These Chinese companies almost exclusively use Chinese staff for most roles, skilled/semiskilled or otherwise. Most of the suppliers and raw material are also from China. Local population are sparingly used for few marginal jobs like security guards and in some token role; even though local skill would be available or easily cultivated.
This results in that all money invested in the infrastructure project do not generate employment or boost local economy in their creation. This is usually large part of the benefit realization of infrastructure project in form of boost to local economy and employment. This does not happen in these projects and all money goes back to China in form of employment and supplies of machinaries and raw materials. These countries are left with loan and asset that has dubious ROI estimates; the return is only planned from the cost of use of the asset that might not realize as the boost to economy that is factored in for increased local usage do not materialize
That's called circular exploitations. They have hidden agenda from day one. India should be doing the same in different manner.
☝️☝️☝️...
Hats off to AHM Kamal
For having the courage to stand up to Chinese pressure and speak his Mind
.... hahah!!! SMART GUY!!!?? 5:22 .. you got some audacity to call this alcoholic, uneducated, brothel owner a mafia thug call LOTUS Kamla AKA mostofa kamal a smart man!!! .... well, what could we Bangladeshi expect from an indiaan channel like yours?? ... here's some factual history for you guys about LOTUS KAMAL Bangladesh's current finance minister who can't even count, read or write. LOTUS kamal who never went to any educational institute & used to work for a brothel to negotiate price with the customer while his mother was a prostitute & later became mistress of the infamous TAAN BAAZAAR brothel in Narayanganj 20 km south of Dhaka his father identity has been unknown as LOTUS KAMAL himself was born in a brothel which his mother used to work & he climbed his ladder up as a mafia thug by extortion, kidnapping young girls then sale them & by helping his mother to run the taan bazar brothel from very young age not to mention extortion & how much money he had lost for his drinking & gabling hobbit at the very early age. .. what could you expect from a guy who invites a prn star Sunny leonne for his grand daughter wedding(?!) .. anyway, here's a factual history for you guys ... when I was a little kid in mid 80's, I used to go the Abahoni football club in Dhanmondi, Dhaka, every late afternoon to watch football practice by international FIFA world cup players like Samir Shakir of Iraq or Roger Mila of Ca,eron & domestic stars like Salauddin, Chunnu & others as my house was right across from the Abahoni club & I was a huge fan of that club, .. sometimes I used to sneak from my house to peep inside the club late evening before dinner at around 8-9pm just to watch my favorite players what their doing. ... very often I used to find some then MP's & other people like wealthy business(??) men in their 30's getting drunk & playing cards gambling with stash of money in front of them accompanied by many half naked Bollywood or local female movie stars with them every night.. it was a ritual. .. later I came to familiar with those faces & became aware of who they are . ... one of the regular face was .. you guessed it!! .... Bangladesh's present finance minister honorable Mr. LOTUS KAMAL😁
2:26 Indian Army stepped in because the Bhutanese Govt requested India to intervene
Bangladeshi finance minister is repeating exactly same words answered by Jayashankarji to Bangladeshi foreign minister in Munich economic meet.. don't know why no news Channel acknowledging this....
I don't know about news channels..... because they only shows stuffs that tends to drive viewers hyper-sensitive. But Jaishankar's replies and statements garnered lot of attention on digital media and even social media. I think ThePrint too covered it.
No wonder his prediction is now the reality the man who realized it he should be highlighted
Few corrections
1. Padma bridge project is entirely funded by Bangladesh govt from internal resources. No chinese loan as you have stated. However, world bank withdrawal is correct fact.
2. India also have extended soft loan of more than 6 billion USD through Exim Bank.
3. China proposed electrification of entire Bangladesh railway at exhorbitant prices.
☝️☝️☝️.
Yes you are correct. The bridge was fully funded by Bangladesh government. But China is funding the 200+ km rail link project that connects with the bridge which gonna cost more than $4 billion.
Yes this was quite a notable error. The bridge was entirely funded by the government of Bangladesh but the construction contract was awarded to a Chinese company
India steps upto bhutan cuz ,we hv a treaty with bhutan for their security.which is not the case with srilanka ,as we only can hv diplomatic leverage over them only ,,not any binding pact..so ,india will never step up for srilanka security unless they ask for it
It's not only srilanka's security, it's indian security too at risk
@@jumuomal now you say
I love my India.
Congress MP Rajiv Shukla wanted India to join BRI. He was given a befitting reply by the late Sushma Swaraj. Now, the dragon is a lot of things but NOT A FOOL. The Chinese economy was slowing down post the GFC. They had accumulated a lot of dollars and didn't really have many profitable avenues back home to invest. Hence, they conceived BRI. India's external debt stands at 19.9% of GDP (or $620 B). The good thing is we don't even borrow much from the US and only half of it is in USD. The rest is the rupee, euro, and yen.
Rajiv Shukla 😃😀😆🤣
Production quality has improved a ton. Keep up the good work!
Hi Soham,
Thank you for your appreciation.
China played the reverse uno card. This is what happened to China when the Qing dynasty lost the opium wars. It lost control of its ports to western powers, Hong Kong to UK, Macau to Portugal, Vladivostok to Russia, etc. They gained most of these back(except Vladivostok) after 100 to 150 years. Now they're robbing ports across the world.
Playing the reverse uno card on countries they've never played with before.
The comparison is erroneous. Let China repay the erstwhile colonialists by attacking their ports , not harmless smaller nations. It is Colonialism 2.00 in the making.
The mentioned info on the financing of the Padma bridge is not entirely true. The government of Bangladesh financed the entire road portion of the Padma bridge. But the Padma bridge also has a rail section, only that part has been financed by China.
☝️☝️☝️..
Seems to me that the Chinese intentionally loan to bad credit risks in order to get ownership of the properties. For example, when Sri Lanka could not repay the loan for Hambantota (most of the money went back to China anyway), they got a 99 year free lease on Hambantota.
Great CTC.
Burdensome high interest loans to risky debtors can also often feature overpriced products and the compulsory employment of foreigners on the work sites.
Common methods used by your local shady car dealer all the way up to predatory foreign nation states.
The "Climate Change Loan" facility for Bangladesh is closer to "free chips".
Hard to ignore such a reward just for playing by the "house rules".
They will do the same with Gwadar port in Pakistan too.
I think every country has to now include a “force majeure clause” in their loans agreement which allows situations like pandemic or recession etc. etc.
Recession isn't force majeure.
"Force Majeure" is french. I saw her with James Joyce's ghost.
Napoleon said that the English were a country of shopkeepers. It more aptly applies to China, a massive shopkeeper for the world, and a Shylock. India was wise to flatly refuse to join the BRI. China tried many tricks to pressure India into joining, including the Doklam incursion. I am not sure what UPA would have done given those circumstances.
Chinese will land in Sri Lanka, Sri Lanka has also allowed Pak Frigate Taimur in Lanka, which Bangladesh didn’t allow. This should be a warning to India. Sri Lanka helped Pakistan helped 1971 war . We should prepare wisely.
It's amazing to see the ease with which SG presents the complex topics. While I may not agree with him on few of his opinions (where he is heavily opiniated) but I still end up waiting for these CTC episodes. Thanks SG for this uncluttering and non hyphenated journalism.
☝️☝️☝️.
Oh another cut the clutter👍👍👍these Chinese loans in my opinion are handed out to countries they know can't repay, therefore it's a backhand way of getting a foothold in another country
Totally agree! They do their do diligence alright.Its a strategic plan to own assets in Other countries or trap them . But the Shekar Gupta is so sweet! He says the Rajapakshas agreed to the Humbaltota port because they thought it would bring economic benefit to their constituents 😂
Debt is an essential tool of Capitalism seeing how China is using it internationally. It is about time we start looking at China of today as a capitalist country and not a communist country
Thanks Mr. SG
Your discourse was hugely thoughtful.
A warning call for India, too, though India has visionary leadership to steer away our country from such traps and tricks.
Prevention is better than cure.
A large number of foreign institutions , ie ADB , IMF , World Bank and others pegged countries like Bangladesh, srilanka , Nepal , Pakistan , very high on certain social indicators , ie the micro bank , of Bangladesh,happiness quotient, etc , these countries are literally falling apart economically, whereas here in India , we hve criticised just about all finance ministers for state of economy, even during this tuff covid period....is it not time sir we gave little respect to our financial institutions, RBI , SEBI, and others ......good feel factor
Why should we praise government cronies in RBI and SEBI? They are just doing their jobs. You don’t hear anyone praising MMS for saving India from total meltdown in 2008 crisis.
@@yj9032 We do. Have you forgotten how Raghuram Rajan was projected as some God given gift?
@@yj9032 ????? Just because they're just doing their job doesn't mean we shouldn't be glad about the strength and quality of our institutions
I have a concern/question. I have subscribed to TH-cam premium so that I don’t have to watch ads. Now streaming channels like Print will have inbuilt ads in the videos, whats the use of any subscriptions? Why consumer always suffers?
SG funny line “Pakistan is too Nuclear to meltdown” 😀
The Era of freebies, subsidies and tax cuts is gone. Government across the globe will start increasing interest rates, might slightly reduce once inflation is under control but will never as low as it was before, freebies and subsidies will push a country or a state into bankruptcy, we've been seeing this trend from Venezuela to Sri Lanka, a lot of countries are on their way, the next one being Pakistan, it's interesting to see what Bangladesh does, relying on just textile industry is a recipe for disaster
The problem is with not creating enough quality jobs to support the system, why blame freebies when politicians are looking crores and loan defaulters simply leave the country?
Really Informative...! 😊
Thanks for knowledge
Thanks sir
China's huge Arms supply to Sri Lanka helped in defeating the LTTE. Sri Lanka was obliged to Chna. China similarly helped Pakistan with Nuclear Reactors and the net result is questionable CPEC and the huge accompanying Loans.
The Chinese are sort of Yes Bank of the Rana Kapoor era. He was dubbed the "Lender of last resort". World Bank, IMF, and JICA loans are disbursed only after due diligence and feasibility studies. The level of scrutiny doesn't allow politicians to pickpocket the "loan amount" for themselves. The Chinese are happy to look the other way. They don't mind the "Netas" pickpocketing because it is the country that is giving the collateral. It is actually a very GOOD BUSINESS MODEL. Whether you pay or don't pay. The Chinese are still milking you to the FULLEST.
China itself is facing issue with mortgage and housing real estate sector proven with recent henan protests.
😃😃
very true. That's why see most recipients of Chinese loans are small countries with dodgy compliance record.
Chinese are milking you, for sure. But valuable capital is getting destroyed at the end of the day. I consider this a crime against humanity!
Capital that was transferred to them via trade with the West. They should have made the capital move around and spread prosperity. Instead they spread misery.
Time to study Laos debt crises, Thank you SG sir on advance intimation.
☝️☝️☝️...
Shekharji I am an avid follower of your analysis of national and international burning issues and I agree to you in most of the cases. However, I beg to differ in this case.
1. It is not that China wanted to give loans forcibly to the borrowing nations.
2. These countries asked China for loans.
3. These countries took loans fully knowing the rates of interest and terms and conditions of the loans.
4. These countries took loans from China even at higher rates of interest and harsher terms because multilateral agencies were not ready to give loans to these countries.
5. These countries are Sovereign and therefore their experts must have vetted these projects and were found to have been financially viable and beneficial to their countrymen.
6. After taking loans and you fail to utilise these properties it is not the fault of the lender.
7. It is the general rule (as you yourself have said in the video) that the interest will be higher on loans taken on easier terms. It happens in our daily life in India that local money lenders charge higher rates than scheduled banks because they need not go through all paperwork. Some people yet make profits whereas some fall into debt trap. Still some others who avail loans at a very low interest with subsidies fail to repay loans and fall into debt trap.
While I don't carry any brief for China but I have always felt how China is responsible for debt trap. The fault lies with the national governments who have taken loan from China.
Dear Mr Subba,
We appreciate you writing in with your views.
Such an excellent succinct episode. Really enjoyed how you pulled so many different threads together. Even the so-called International advanced news cannot keep up with the breadth and depth of your analysis!
The problem here is that China has been peddling itself as a leftist, communist saviour of the world (much like the old USSR) and it is NOT. It is an authoritarian welfare state using the same economic model the West and Japan use and these backward countries such as Pakistan and Sri lanka are being preyed on. Gupta should be examining this in depth to better explain what is really going on and so that we may better understand how China has co-opted the Western approach to raiding other regions of the world.
Thanks
☝️☝️☝️.
thanks shekhar for keen elaboration.
Great vdo. One of the best episodes so far. Thank you Shekhar Sir and team 😎😎😎
☝️☝️☝️...
Episode no 3 when he is going on defending Bangladesh economy. Mentions external debt for all but didn’t mention india cause then previous episodes argument fail. Did not comment on sudden rise of fuel prices and power shortage in Bangladesh. Shekhar don’t assume that your audience is uninformed or stupid
Evidence once suggested that Bdesh economy was doing well, so he presented it that way, now the evidences suggest Bdesh economy is not well, he is again presenting it that way. Where is the problem?
Wow, Gupta'ji finally unravels the plot which has launched a million articles already.
Sri Lanka can hostage that ship to pay some loans. Chinese would pay all their debts to save their technology 😀
It's fashionable n to some extent natural to bash Pakistan. But our policy makers might not realise it today but some day they will realise Srilanka will always be a problem too. No matter what support India provides, the fundamentalist Buddhist monks of Srilanka who are a powerful lobby always prefer and see China as their natural allies. That leaves us with Bangladesh as the only true friend in the neighbourhood. Hope the current Central govt doesn't ruin the relationship with Bangladesh further for petty political gains domestically (use of words like Termites).
Why do the monks prefer China?
@@asmitnandi3432 Religious reasons?
@@asmitnandi3432 China has 244 million Buddhists. The monks hence see China as their natural ally to further their faith.
@@180190ful Only 18 percent of China's population consists of Buddhists.
Don't forget about Bhutan
A hope is not a plan......Best line guru....
Thanks .unbelievable knowledge
☝️☝️☝️.
Engaging and informative every minute as always ! 👌✌️
Why am I paying for youtube premium when I have to see ads
One day SG says Bangladesh is ahead of India and then another day he tells why it's in serious mess! Devils advocate.
An excellent summation of How Chinese debt traps operate, and especially in South Asian soft spots.
Best videos! Breaking complex issues
☝️☝️☝️...
Sir, why is there no cut the clutter on Young India scam.
Hi Shekhar
Can u publish the episode in text of CTC episodes just like we get video and text document for national interest weekly.
☝️☝️☝️....
Just want to add my bit that though China may own the port in Sri Lanka, but i am sure that all sovereign countries in such situations, they would certainly have put in clauses in the agreement that the port could only be used for economic activities and would have retained the right to refuse any military or suspicious activities.
its part of the agreement.. but chinese w.r.t this ship is calling it a research ship.. dear.. Srilanka has the right to refuse to dock any chinese military ships in hambantota
Wonderful article, so succinctly analysed Brilliant. Thanks,Shekharji..
Hi Prashant,
Happy to hear you liked it.
Excellent analytical information
very informative. thank you sir.
☝️☝️☝️..
We in Bangladesh have 22% Debt to GDP ratio and we are managing but India has almost 90% although it has huge forex. But India should be careful as well since our economy is dependent on a strong India.
Thanks bro for the concern.. But let me explain a complexity of economy. Ambhani with 2000 billion worth can still show 1900 billion dept. as he is still can end up having 10 billion worth resources even the authority Consfecate you. Where as a chaprasi with 100 rupee debt might sell his family for 10 rupee more profit?
You need more study on how debting work in economy. All development activity works on debts, But how this debt is acquired matters. Internal accruals account nearly 90% of Indian debt [Internal Debt constitutes about 89.8 per cent of public debt and External debt is only 10.2 percent of the same. External debt constitutes 8.4 per cent of overall Central Government debt and 5.5 per cent of overall general government debt] , So India can print money to cover its debt [would result in high inflation as a effect and Indian people suffer the consequence of it not the world]. At end-March 2022, India's total external debt was placed at US$ 620.7 billion, which is same as foreign reserves in RBI. So if India decides to stop imports (of which near 40% is crude which will be almost negligible by 2036 by electrification and ethanol fuel) and can can use its reserves to clear to total debts. For example, Other than Multilateral loans Japanese loans are mostly used in India, What to know interest India pay on it. 0.1% interest, with a 15 year lock-in period 😂
Do similar study of your [Bangladesh] Debt to GDP ratio, you will understand where real concern is? 😂
Shortcut : Refer Credit rating of S&P, Moody's and Finch of both India and Bangladesh to get good Idea
Bangladesh - BB- [S&P & Finch] Ba3 [Moody's]
India - BBB- [S&P & Finch] Baa3 [Moody's]
Bangladesh is Junk and speculative grade where as India is in Investment grade. Above notes is the reason for it. Chill..!!!😛
www.google.com/search?q=standard+%26+poor%27s+ratings+scale&sxsrf=ALiCzsZ_3JAiWQ_SJNlBPWUDJy8yGkN8Iw:1660179734783&source=lnms&tbm=isch&sa=X&ved=2ahUKEwj0h-u6y735AhWl3jgGHaEUD0MQ_AUoAnoECAEQBA&biw=1536&bih=722&dpr=1.25#imgrc=A0XzIXHYhQ8FsM
www.google.com/search?q=standard+%26+poor%27s+ratings+scale&sxsrf=ALiCzsZ_3JAiWQ_SJNlBPWUDJy8yGkN8Iw:1660179734783&source=lnms&tbm=isch&sa=X&ved=2ahUKEwj0h-u6y735AhWl3jgGHaEUD0MQ_AUoAnoECAEQBA&biw=1536&bih=722&dpr=1.25#imgrc=4KOnhxxROaxj2M
Bangladesh's Foreign or External debt to GDP ratio (and not the debt to GDP ratio) is 22%. India's foreign or external debt to GDP ratio is 19.9% as of 2022 which is actually less than that of Bangladesh.
There is a stark difference between the terminolpgies "Foreign Debt to GDP Ratio" and "Debt to GDP Ratio".
Debt= Internal debt + external debt. Bangladesh's official Debt to GDP ratio is 34.7% as of 2022 but that does not include several elements like private external debt, sovereign guarantees, contingent liabilities and intra-governmental liabilities; if those elements are included Bangladesh's real Debt to GDP ratio would be around 44.1%. In comparison, India's debt to GDP ratio is indeed relatively high at 89.6% ( out of which debt taken by all Indian governments, the states and the central included, to GDP ratio, is around 75% and debt taken by the Indian central government alone to GDP ratio is around 62%). But most of India's debt is internal debt that is loan taken in Indian Rupees from Indian banks and Indian lending agencies and not in foreign currencies (for example, Indian government takes loan from Indian banks deposited by Indian customers of those Indian banks, in Indian rupees in some form or the other, like say, fixed deposit). Since Indian central government has sovereign rights to print Indian Rupees if need be, repaying money in rupee toward debt servicing is not a big deal for the Indian government although liquidity due to injection of more indian currencies into Indian economy would cause inflation but the good thing is that things have not come to such a pass to the extent of printing more Rupee just for debt servicing with Indian government not having defaulted on its internal debt till now. India's revenue to GDP ratio at 12% is better than that of Bangladesh at 9.5%; so it is easier for Indian government to repay its internal debt compared to the Bangladeshi government. In FY19-20, India had 82.2 million income tax payers(both individuals and corporates). In comparison, in FY20-21, Bangladesh had just 2.3 million income tax payers (both individuals and corporates).
@@knightatdawndonbynight8432 Yes I checked the data.. but don't want to spend my writeup in correcting his numbers. Yes Bangladesh's official Debt to GDP ratio is 34.7% and of it 22% (66% of Total Debt) come from external borrowings. Real problem is external borrowings which I expected him to analyse himself by taking my explanation of India.
Thanks for going in depth to explain him where real concern is.. Poor boy 😆
@@rameshreddy2631
Yea these people are still high with their nominal GDP per capita surpassing India's in the abnormal pandemic year and they do not read in between the lines to check on the fine print where the devil lies.
You got your informations wrong . Bangladesh didn't build padma bridge by taking chinese loans... it was build with its own money and chinese companies was building it.
China can sit past malacca strait in international waters and still do the surveillance. Not sure what India has done earth shattering, other than reminding SriLanka that we are big brother's and you better behave.
Just awesome.
Woah! I was looking for the skip icon during the initial ad, only to realise it was a part of the video🤣😂
Next time when there is border conflict, India should destroy Hambantota port.
Listen you idiot beating drums of war, go to the border be a soldier and then let's see how fare, don't talk about destroying places and taking lives, when 1000s die and so many lives are destroyed you sit in the comforts of your home cowering at the slightest of discomfort. Keep your mouth shut when you don't know the realities on the ground.
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As always Mr. Shekhar hats off .😁🙏
Very good analysis
Good analysis
Well IMF gave loans to Argentina and bankcrapt them twice.
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Good gob
sir after listening to atleast 5 of your report and the way u present it its very nice and informative . and now i'm subscribed
#ThePrint 🙏
At 3:00, yes, and similarly Shylock demanded his pound of flesh. But he had to extract it without taking a drop of blood. Lol...
Excellent analysis
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I thought lease prohibits military use
Would be good to cut the clutter around China’s investments in India through AIIB and it’s national security risks and implications for us, if any. China’s AIIB is funding and running tens if not close to fifty state government projects in data sensitive projects like water supply, electricity distribution , road network projects, city urban services plans etc. These projects and investments by AIIB could expose our geographic and demographic details to the Chinese bank. If I am not wrong, India is also a minority share holder in this Chinese infrastructure Bank.
Such a soft addresses for your love China...
Watch Shushant Sinha you will understand how we should treat Chinese..
Bangladesh is not worried about China debt trap rather concern about invisible traps.
Champion lender of the world 😂😂😂
Gupta ji 🙏
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The geo position of hambantotta port , the very near proximity to international sea route, almost a best halt for ships after the Suez canal or Capetown enroute, this if managed properly and wisely, can become a very high economic spot for Srilanka which can be a strong competition to Singapore and Hongkong. 👍
Chinese troll spotted. Nearby Colombo already handles a lot of such traffic. Fuk off
How to track ship
Boat and paddle.
@@rutvikrs 😂👍
@@rutvikrs 😆👌
Sri Lanka can hostage that ship to pay some loans.
Mr Gupta try to keep head straight ...it would help viewer listeners to understand what's your point of view and the subject...thanks
Dear sir. thanks for an excellent article sorry to point out that Padma bridge is built entirely by Bangladeshl , money the Chinese worked as contractor bd didn't take any loan for Padma bridge. ,
Well explained! Mr. Gupta.
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Best as always 👍
Thanks Milind!
Srilanka knew what they were getting into, it's not like they are idiots. They wanted to play what we call double games to not getting too closer to India so that they have some leverage over India because of China.
and see where they have landed. Anyway, food for thought for India.... why are our neighbours so suspicious of us? Why do they feel they need a leverage to deal with India?
@@hpremjit It's not about trust, it's geopolitics. Just like India which is paranoid of USA so it has stayed neutral in this Ukraine Russia War, small neighboring economies are paranoid of big daddy India in the subcontinent region. The only difference is India managed to be self relient and not too much dependent on one pact, our neighboring countries had put too many eggs on China's basket because of their greedy politicians and inconsistent foreign policies, now they are paying the price.
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''Hope is not a plan''👏👏👏
4x or 4%. Which is it ? 4x or 0.04x
“Hope is not a plan” SG thought for the day.
This is like the best news show out there......
Is it just me or did I see the shakarkhora bird on the Sri Lankan currency?!!
The classic salami slicing,today refueling satelite detection vessel, in 2030 aircraft carrier
China's lease could be with certain terms and conditions to be refered
Without any loan from China we in India facing massive price rise
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Sir, There Is A SIMPLE MODEL Called " Build Operate & Transper Model " . = No Zero Dedt Trap
Legends read and understand news on their own. Kids listen to news from Print and Shekhar Gupta and think they are getting it all.
Ok Wumao, don't like the facts get off the channel. Little pinks are so fragile.
Good one. China's debt trap diplomacy. How easy and convenient an Western construct to structural and political issues faced in countries like Sri Lanka and Pakistan.
People here in India will fall for anything that is anti- China without knowing the complete issue.
Maximum Sri Lanka debts are held by Europe and Japan.
Even though Chinese own the port, Srilanka has the sovereign right to decide that the port cannot be used for military/espionage purposes. Srilanka can any time use their sovereign authority to restrict what Chinese can do in the port. They could even force trade to and from Srilanka should only go through say Colombo port and starve Chinese owned port.
And in return China can ask for all their money..
@@kunal25roy They can't. They still can hold the 99 year lease. It is just like any other national resource. They have sovereign right make national policies. Of course China can even go to court or they can bully/coerce by other means to fall in line. Later is more likely i guess.
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Chinese loan is 10% Sri Lanka loan, while 90% is to IMF and western countries institution. which one is the Sri Lanka problem? the Chinese BRI is only for infrastucture, you cant use for other purpose..weapon, interest etc..
In Capitalism debt is paid back in cash or in kind. Pakistan is an expert in paying back in Kind.
We should invite the Bangladeshi Finance Minster to give a lecture on fiscal management to Punjab and PSU Bank babus.
Bangladesh is in good hands. They will come out of this crisis stronger.
This will pay off for years to come. Short term pain.
@@rutvikrs I dunno about that but a Bangladeshi FM lecturing about fiscal policy would definitely generate short term outrage amongst our Lutyens intelligentsia just like the proposed Electricity (Amendment) Bill.
@@libshastra Ig we should swap out our Raghuram Rajan with their Mustafa Kamal
@@orkkojit Lutyens will call Mustafa Kamal, a RSS member because his name has Kamal.
I should write Lutyens comedy.
@@libshastra According to Lutyens, Arif Mohammad Khan is fake muslim while Mamata Banerjee is true muslim