Sri Lanka defaults on foreign debt Bangladesh’s $200m loan hangs in balance

[Black_cats]

No you can't default on loans and get away with it. The lender has the right to cease your assets in other countries, cease your any future transactions, completely block you from the world, IMF, WB, ADB. For sovereign guaranteed loans, you can just take Colombo port.

It doesn’t work like that fully. It’s like declaring bankruptcy. When someone declare bankruptcy you set a board of trustee they just pay back the debtor depending on fund they have.

Yes India can seize assets of Sri Lanka in India but can’t do more than that. They may still continue to pay part of the loan.

So getting Colombo port out of nowhere is not that easy. There are more lenders who gave bigger amount than India.

 

[mb444]

Srilanka has defaulted on all its loan. This would also include BD loan. There was always a risk of that.

Overall its not a great amount but is a big amount for BD. We will get it back in a few years, in the mean time interest will accrue... we will probably forgive that as part of the debt restructuring.

 

[UKBengali]

BD may think again now on whether it gives the new 250 million US dollar loan that Sri Lanka is asking for.

On one hand it may have to wait longer to get the money back and on the other it will build influence in Sri Lanka and that will pay dividends into the future in terms of trade.

 

[Rollno21]

The government was targeting Muslim and dont allow proper Muslim buried Covid 19 victims.

We see some countries who target Muslim in their own country get slower economy

And the Muslim countries did wonders,stop seeing everything with religion.

 

[ziaulislam]

It appears that EVERY country has a National debt and has borrowed money from somewhere. Just who are doing the lending

Investors from around the world

 

[mb444]

BD may think again now on whether it gives the new 250 million US dollar loan that Sri Lanka is asking for.

On one hand it may have to wait longer to get the money back and on the other it will build influence in Sri Lanka and that will pay dividends into the future in terms of trade.

We absolutely should not. Global recession is coming and BD must marshal its assets to ride it out.

BD will continue to use colombo port and payment of the loan can be made by offsetting port costs perhaps.

 

[INS_Vikrant]

So they're defaulting proper
I wonder what happens now

If you understand hindi watch

 

[HttpError]

If you understand hindi watch

Kon 10 minute dekhe? post something under 5 minutes.

 

[Tom-tom]

If the west cared so much about Chinese debt trap in regards to Sri Lanka, then the west would write off its debt to Sri Lanka which account to 55 % of its total debt.

Where Sri Lanka debt to China only account 15-20% of total debt.

The west is so civilised with its lies

 

[INS_Vikrant]

Kon 10 minute dekhe? post something under 5 minutes.

Watch from 7:24

 

[HttpError]

Watch from 7:24

I did, he explains it well but could sense some very strong anti-china rhetoric from him. I mean China doesn't force countries including Pakistan to take their high-interest loans. If other countries could offer better alternatives then why would they go for the Chinese loans.

The problem is the government who are in power don't really care, as they think by the time of loan maturity they will not be in power so it won't be their headache. I hate taking loans personally as well for countries.

 

[Tom-tom]

Someone should recommend you for a Nobel Prize for inventing things like the relationship between economy and Muslims when Muslim countries remain at the lowest rung of the economic ladder, and it is the Muslim countries who keep on begging and borrowing money from the Christian and Buddhists majority countries.

The guy has a point in most extreme like the run up ww2 marginal communities became even marginalised when Germans economy went down wards.

Today this truth is also evident and it's a little more complicated, than that. As the west has been in a covert war against what happened to be progressive states that coincidently happened to be Muslim. The west is also in eventual economic slow down- down turn and Asia is on a upward trend. With casual/soft fascism on the rise in the west Muslims have become the new scape goat.

 

[PakFactor]

The government was targeting Muslim and dont allow proper Muslim buried Covid 19 victims.

We see some countries who target Muslim in their own country get slower economy

Yup they end up being a future shithole.

 

[bluesky]

Sri Lanka defaults on foreign debt Bangladesh’s $200m loan hangs in balance

What is with this small $200 million loan to a destitute Sri Lanka? BD people are poor but generous unlike China. If necessary, BD should write off the loan or give SL more time until it gets back on its feet.

Even using Colombo Port and deducting money from there is no good. A small BD must wait. SL has the right to seek helps from other countries and in the meantime, BD should examine minutely the reasons why SL is in default.

I can see similar way of wasting money in BD as well. It has a foreign debts of $78 billion that will rise to about $97 billion in a few years. Most of the money was used to build civil engineering projects that do not really return the investment unlike it does with industrial projects.

BD is in problem unless its exports rise to $60 to $80 billion within the next few years. Otherwise, it will also default. Note that BD imported about $80 billion worth of goods last year. There is a thread on that opened by @Homo Sapiens.

 

[dbc]

If the west cared so much about Chinese debt trap in regards to Sri Lanka, then the west would write off its debt to Sri Lanka which account to 55 % of its total debt.

Where Sri Lanka debt to China only account 15-20% of total debt.

The west is so civilised with its lies

Sri Lanka's largest creditors are in Asia not the West.

Sri Lanka, through repeated cycles of borrowing since 2007, has piled up $11.8 billion worth of debt through sovereign bonds (ISB), which makes up the largest part - or 36.4% - of its external debt. The Asian Development Bank (ADB) is in second place with a 14.3% share, having lent $4.6 billion. Japan is at 10.9% and China at 10.8%, with each having lent about $3.5 billion each. The rest of the debt is owned by countries such as India and international agencies including the World Bank and United Nations. Explainer: Sri Lanka on the edge as debt burden mounts Hit hard by the COVID-19 pandemic, Sri Lanka is facing its most serious financial crisis in years, raising doubts about its ability to pay its creditors. www.reuters.com