Analysis - A recent announcement by China that it is forgiving 23 loans for 17 African countries may be motivated by accusations of "debt-trap diplomacy," say some analysts.
By Kate Bartlett
China's decision to forgive the zero-interest loans is, in part, aimed at countering the debt-trap narrative, said Harry Verhoeven, senior research scholar at Columbia University in New York. "This is not a loan cancellation per se, but the cancellation of the remaining unpaid portion of interest-free loans that have reached maturity, that is if a loan was supposed to be fully paid off over 20 years, but it still has an outstanding balance, they cancel that outstanding balance," Deborah Brautigam, director of the China Africa Research Initiative at Johns Hopkins University's School of Advanced International Studies, told VOA.
China has also been playing a role in restructuring the external debt of some African countries such as Zambia, which became the first African country to default on its debt during the pandemic. China, along with France, is chairing a committee to deal with debt relief efforts. The move, welcomed by the International Monetary Fund, is ongoing.
, touched on the idea that"the wealthy and powerful have extracted Africa's natural resources for their own gain. And it continues today through bad deals and debt traps." She did not mention China by name., refuting the idea, saying,"A partnership that does not benefit both will not sustain long."
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