2023-10-07 11:26:49
(Archyde.com, Nairobi, 6th) Vice President Jachagua of the East African country Kenya said today that President Ruto will request a US$1 billion (approximately NT$32 billion) loan from China when he visits Beijing later this month. Complete stalled road-building projects and request an extension to repayments on existing loans.
Kenya currently owes more than 8 billion US dollars (approximately NT$256 billion) in debt to China, and the government of former President Uhuru Kenyatta used these funds to build roads and other infrastructure. But many related projects have been suspended because contractors failed to receive accounts payable and abandoned the projects.
Africa is a key region for Chinese President Xi Jinping’s ambitious Belt and Road Initiative. However, under the initiative, Beijing’s loans to Kenya and other countries have increased significantly, causing heavy debt and debt repayment pressure in these countries, triggering the anger of critics.
Official data shows that half of the Kenyan government’s current revenue is used to repay maturing Chinese debt, resulting in financial constraints. In addition, Kenya’s currency has depreciated significantly and it has to repay other foreign debts, making the situation even worse.
But the plan William Ruto now plans to propose to Beijing shows a change in his stance on Kenya’s Chinese debt issue. During last year’s presidential election, his coalition criticized former President Ganyeda’s aggressive borrowing from China. Ruto served as Ganyeda’s deputy for a long time before being elected last year.
In an interview with Kenyan radio station Inooro FM, Rigathi Gachagua revealed that Ruto will tell Chinese officials: “Can we talk, can you give us more time so that we can slowly repay our debts, and Can you give us a little more money so we can finish building the road?”
“If we get $1 billion, we can pay these people (contractors) what they are owed and get them back (to work). That way, even though we have to pay off the debt, the road can be completed,” Jachagua said.
Ruto’s cabinet ordered all ministries to reduce their budgets by 10% on the 3rd, and Ruto’s office has also implemented some restrictions on government officials’ overseas visits to save money. Central News Agency (translation)
Kenya will borrow another US$1 billion from China as its Belt and Road infrastructure is unfinished
1696699845
#Kenya #borrow #US1 #billion #China #Belt #Road #infrastructure #unfinished