president of the world bank, David MalpassHe stated that he looked atworry“Privileges Bank credits that China It has been awarded to various countries in Africa. In an interview with the British broadcaster BBCMalpass stressed that the terms and conditions of these credits should be “more transparent”, in the midst of the information that states like Wins And Zambia They are having trouble repaying the money borrowed to Beijing. China replies that all operations are conducted in accordance with international law.
There is currently a growing rivalry between China and United State To gain influence on the African continent, where strategic natural resources such as Nickelwhich is crucial to the batteries that electric vehicles depend on, among other things.
Many countries with fragile and developing economies are asking for loans from other countries or international organizations, but the increase in interest imposed by the US Federal Reserve or the European Central Bank over the past year has caused some of these countries to find it difficult to repay them. For Malpas, it is particularly difficult to find additional money in an economy whose currency is constantly depreciating, which causes a “double whammy,” and means that (economic) growth will be more slow“.
“What I particularly recommend is that they be transparent in contracts. That was one of the issues, if you make a contract and it says ‘but don’t show it to anyone else’, that’s a negative point, you need to stay away from that.”
In the case of loans from China, he noted, African governments “offer guarantees as incentives to obtain a loan,” something they should not do because it “hampers (the issue) for generations.”
Malpass points out that these financing problems are not limited to the Asian giant: “If you look at the history of Western loans, sometimes they are not in favor of people in other countries. Even loans from International Monetary Fund They weren’t always the best thing to do for a country.” He concluded, “What we’re trying to do, and what I think everyone should be doing, is to improve the quality of these loans.”