A country like Ghana is filled with resources, peace and a stable political entity, yet the country is impoverished. I like how western nations keep trying to point at Ghana as a success story, when any sane person can see Ghana is a tragic country shackled in debt. Ghana is a perfect lesson of what can go wrong when even everything goes your way.
Ghana signs $13 bln in Chinese loan deals
Ghana signs $13 bln in Chinese loan deals
Excellent news for growing business ties between China and Ghana!:cheers2:
PS: It seems that the American-domininated institutions like IWF and Worldbank are continuously loosing their grip on Africa which have strangled the continent from the early/mid 1980s up to now.
http://www.guardian.co.uk/business/feedarticle/9277341* Reuters, Wednesday September 22 2010
By Kwasi Kpodo
ACCRA, Sept 22 (Reuters) - Ghana signed nearly $13 billion worth of loan deals with Chinese investors, the government said on Wednesday, announcing one of China's largest financial commitments in Africa to date.
The accords, signed during a visit by President John Atta Mills to Beijing, were viewed with caution by analysts noted a lack of specifics over the terms and who added that loans of that size could violate Ghana's IMF commitments.
The accords are aimed at funding energy, agriculture and transport projects in the West African state, Ghana's Deputy Finance Minister Fiifi Kwetey said by telephone from Beijing.
China has signed a slew of other big money deals across Africa -- including a $6 billion deal with Congo -- as it seeks to lock up resources to fuel its dramatic growth, and it is among the investors competing for a stake in Ghana's offshore Jubilee oil field.
The new loans include $3 billion from the Chinese Development Bank to finance Ghana's oil and gas infrastructure and agricultural development, Kwetey told Reuters.
"It's a comprehensive facility that would be used to develop the oil and gas sector and also to scale up infrastructure for agro-industries throughout the country," Kwetey said.
A second deal for $9.87 billion was signed with Chinese Exim Bank for road, railway and dam work, he said.
Kwetey said the broad framework for the use of the loans had been agreed but he declined to give details and said the specifics would be worked out later. He added the loans will require final approval from Ghana's parliament.
SCEPTICISM
Analysts said the details of the agreements were crucial to understanding their importance.
"We don't know if this is a loan or a credit line, what portion will be tapped, and what are the terms," said Richard Segal of Knight Capital. "We've seen many times in the past when there is a large loan figure announced and it turns out to be misleading. A degree of scepticism is advisable."
Ghana, an IMF member and one few sub-Saharan countries with a Eurobond, has cut its debt to around 8 percent of GDP from over 20 percent in 2008 but runs the risk of backsliding due to higher public borrowing.
"The IMF has recently relaxed its own constraints on programme countries' non-concessional borrowing, for countries like Ghana which have adequate debt management capacity," said Richard Fox, head of Middle East and Africa Sovereign Ratings at Fitch.
"But higher debt inevitably increases risks, especially in countries with volatile income streams. Ghana's debt burden is already one of the highest in sub-Saharan Africa," he said.
A Chinese loan deal to Democratic Republic of Congo was trimmed to $6 billion from $9 billion last year after the IMF raised concerns the contract, which used mineral reserves as a guarantee for infrastructure projects, would plunge the central African country deeper into debt.
The Ghanaian cedi was trading at 1.4278 to the dollar by 1456 GMT, from a 1.4280 close on Tuesday. The Eurobond was unmoved.
The onset of oil production in Ghana is expected to help boost its growth into the double-digits next year, making it Africa's top performing economy. Production is forecast to quickly ramp up to 120,000 barrels per day and eventually reach 250,000 bpd -- making it sub-Saharan Africa's No. 6 producer.
Ghanaian Deputy Energy Minister Emmanuel Buah told Reuters last week Ghana was making progress in talks with unnamed Chinese investors interested in buying a stake in the big offshore Jubilee field. It was not clear whether there was a link between that and the loans agreed in Beijing.
Jubilee, operated by Britain's Tullow Oil, holds around 1.6 billion barrels of light crude.
(Reporting by Kwasi Kpodo and Richard Valdmanis; writing by Richard Valdmanis; Editing by Ron Askew)
Excellent news for growing business ties between China and Ghana!:cheers2:
PS: It seems that the American-domininated institutions like IWF and Worldbank are continuously loosing their grip on Africa which have strangled the continent from the early/mid 1980s up to now.
1 - 20 of 53 Posts
Going $13 billion into debt is "excellent news?"Ghana signs $13 bln in Chinese loan deals
http://www.guardian.co.uk/business/feedarticle/9277341
Excellent news for growing business ties between China and Ghana!:cheers2:
PS: It seems that the American-domininated institutions like IWF and Worldbank are continuously loosing their grip on Africa which have strangled the continent from the early/mid 1980s up to now.
hno:As usual with China:
analysts noted a lack of specifics over the terms
hno:
You couldn't be more wrong. I'm in Ghana right now and there has been much improvement. New roads, Hotels, real estate, and other infrastructure are being built. Plus, Ghana is on track to half its poverty rate by 2015. Yes, there is ALOT more to do but you can see things getting better. Ghana is the most stable country in West Africa and one of the most developing on the continent. STOP HATING ON YOUR FAMILY!!!!!:bash:A country like Ghana is filled with resources, peace and a stable political entity, yet the country is impoverished. I like how western nations keep trying to point at Ghana as a success story, when any sane person can see Ghana is a tragic country shackled in debt. Ghana is a perfect lesson of what can go wrong when even everything goes your way.
I don't have a problem with this deal with China. Anything that makes us less dependant on America and Europe is a good thing. The Chinese can never do as much damage to Africa as the West have done and still continue to do.
The Chinese loans are cheaper. The Chinese doesn't tax imports from developing countries. They can't replace the West and others, but it's good to have an alternative.
China gives roads, railways..and a future...the IWF ONLY brought misery, war and chaos to Africa...China has done a lot of good things for Africa whereas the IWF with its policies woefully failed....I am currently searching for scientific articles who see a correlation between those variables.
Within the next ten years we will discuss again and draw a line under IWF´s "achievements" and that between China. IWF wants to keep Africa impoverished and in chains and "NGO´- ize" the continent so that they can spread the image of the "incapable" and "poor" Africa around the world...this is a war in a broader definition!!! The new wars are no longer fought with weapons but by means of information, formal and informal laws and other norms...and those who control it, hence define it...WAKE UP...it is not "Alice in Wonderland"!
Within the next ten years we will discuss again and draw a line under IWF´s "achievements" and that between China. IWF wants to keep Africa impoverished and in chains and "NGO´- ize" the continent so that they can spread the image of the "incapable" and "poor" Africa around the world...this is a war in a broader definition!!! The new wars are no longer fought with weapons but by means of information, formal and informal laws and other norms...and those who control it, hence define it...WAKE UP...it is not "Alice in Wonderland"!
China gives...
hno: Your perception is faulty. China takes.
A good thing. IMF or Worldbank demand always things before they give loans to developing countries. For example you first have to reform your economy, sell state companies, reduce public spending etc before you get loans. And that is a bad thing and that has destroyed a lot of countries.
China is not like that. They give loans and don't demand things .
China is not like that. They give loans and don't demand things .
New roads, new this, new that, that's what all governments are supposed to do. You have to look at Ghana for what it is --it's blessed with peace and resources, and a some-what stable government (something hard to come by in Africa), yet you can't explain why Ghana is impoverished the way it is.You couldn't be more wrong. I'm in Ghana right now and there has been much improvement. New roads, Hotels, real estate, and other infrastructure are being built. Plus, Ghana is on track to half its poverty rate by 2015. Yes, there is ALOT more to do but you can see things getting better. Ghana is the most stable country in West Africa and one of the most developing on the continent.
In other words, you don't want to be dependent on the US and Europe, but have no problems still being dependent on China? Rape is rape, regardless if the **** comes from the west or the east. How about you take the money you make in Gold or Oil (your pick), invest a disproportionate amount of it towards your education, then hire the engineers and architects that graduate from Ghanaian schools to build those shiny buildings?I don't have a problem with this deal with China. Anything that makes us less dependant on America and Europe is a good thing. The Chinese can never do as much damage to Africa as the West have done and still continue to do.
Right now, Ghana is borrowing huge amounts of money from China that will shackle your country into generational debt. If that was not bad, Ghana is going to hire Chinese architects and engineers to build your buildings, which brings the money right back to where it came from. Afterwards, as the years pass on, those roads, dams, and buildings the Chinese built you with their loans need to be maintained and since you don't have the proper "know how" to maintain it, you hire the same Chinese firms to do it for you. This is the vicious cycle of debt.
I was going to post, but your two posts have said all I need to say.Going $13 billion into debt is "excellent news?"
As usual with China:
Ghana and Africa as a whole is still impoverished because its trying to rebuild itself from past oppression and continued exploitation. I want Africa to be self-sufficent and we will be treated more fairly by all if we diversify our trading partners. Africa doesn't yet have the hard cash to pay for the infrastructure it needs so I rather we get loans fron China than to continue to borrow from Western institutions.New roads, new this, new that, that's what all governments are supposed to do. You have to look at Ghana for what it is --it's blessed with peace and resources, and a some-what stable government (something hard to come by in Africa), yet you can't explain why Ghana is impoverished the way it is.
In other words, you don't want to be dependent on the US and Europe, but have no problems still being dependent on China? Rape is rape, regardless if the **** comes from the west or the east. How about you take the money you make in Gold or Oil (your pick), invest a disproportionate amount of it towards your education, then hire the engineers and architects that graduate from Ghanaian schools to build those shiny buildings?
Right now, Ghana is borrowing huge amounts of money from China that will shackle your country into generational debt. If that was not bad, Ghana is going to hire Chinese architects and engineers to build your buildings, which brings the money right back to where it came from. Afterwards, as the years pass on, those roads, dams, and buildings the Chinese built you with their loans need to be maintained and since you don't have the proper "know how" to maintain it, you hire the same Chinese firms to do it for you. This is the vicious cycle of debt.
But again, the ultimate goal is being self-sufficent.
The Dude is obssessed with ChinaI was going to post, but your two posts have said all I need to say.
Me? I'm obsessed with other things, and China is not one of them.The Dude is obssessed with China
It's getting harder and harder for China bashers.China eliminates import tariffs for 33 least developed countries
China’s Ministry of Finance on June 23 announced its decision to eliminate tariffs covering over 4,000 products imported from 33 least developed countries (LDCs). The decision supports the Chinese government’s effort to (i) honor its commitments made during the recent high-level meeting of the United Nations’ Millennium Development Goals conference; (ii) support open, fair and just trade with LDC trading partners; (iii) push other developing countries to follow China’s lead in providing better market access for LDCs; (iv) remove one impasse to the Doha Round negotiations by influencing other developed countries to fully honor commitments to eliminate tariffs for 97 percent of products from LDCs; and (v) promote the global economic recovery. The tariff revocation decision went into effect July 1.
The tariff revocation decision names 26 African countries and 7 LDCs in South Asia and the Pacific. The African nations include Benin, Burundi, Chad, Central African Republic, Comoros, Congo (DRC), Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Guinea, Guinea-Bissau, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Rwanda, Sierra Leone, Sudan, Tanzania, Togo, Uganda and Zambia.
The only way I'd see this as a bad thing is if the money "disappears" along the way.
Other than that I think this is excellent news and I hope that Ghana could get on to double digit growth as fast as possible.
Other than that I think this is excellent news and I hope that Ghana could get on to double digit growth as fast as possible.
I mean Matt...Not youMe? I'm obsessed with other things, and China is not one of them.
China can play the benevolent power cancealling debts as long as these countries keep providing resources at banana prices and opening markets to imported chinese trash.
I like you better as Popa1980Ghana signs $13 bln in Chinese loan deals
http://www.guardian.co.uk/business/feedarticle/9277341
Excellent news for growing business ties between China and Ghana!:cheers2:
PS: It seems that the American-domininated institutions like IWF and Worldbank are continuously loosing their grip on Africa which have strangled the continent from the early/mid 1980s up to now.
Or better yet, someone give Popa1980 and Hadrami a chanceChina gives roads, railways..and a future...the IWF ONLY brought misery, war and chaos to Africa...China has done a lot of good things for Africa whereas the IWF with its policies woefully failed....I am currently searching for scientific articles who see a correlation between those variables.
Within the next ten years we will discuss again and draw a line under IWF´s "achievements" and that between China. IWF wants to keep Africa impoverished and in chains and "NGO´- ize" the continent so that they can spread the image of the "incapable" and "poor" Africa around the world...this is a war in a broader definition!!! The new wars are no longer fought with weapons but by means of information, formal and informal laws and other norms...and those who control it, hence define it...WAKE UP...it is not "Alice in Wonderland"!
1 - 20 of 53 Posts
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