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China charges an interest rate of 6.3% for its loans to Lanka, while the
interest rates on soft loans from the World Bank and the Asian
Development Bank (ADB) are only 0.25–3%. Interest rates of India’s Line
of Credit to the neighbouring countries are as low as 1%, or even less in
some cases
But Chinese loans are not the reason for our debt trap. Financial market
instruments are the reason for it. They have a very high interest rate.
China refused to give these junk loans.
On Sunday, October 21, 2018, 5:14:21 PM GMT+11, Anoma Silva
<priyani55@googlemail.com> wrote:
By the way does anyone know the interest rate for the loans MR was giVen. By
China. ?? I. Think it was 2.5 % . Correct me if I am wrong. . Thanks.
Anoma
The only proper yardstick is debt repayment and interest over state
revenue. This was over 95% during Mahinda's last 3 years and this
regime's first 2 years. After wasting money to repay loans and interest,
there is no money for government expenditure. This is again borrowed.
Chandre Dharmawardana
On Friday, October 19, 2018 5:48 AM, "'Dilrook Kannangara' via Strategy, Battle & Military Study
Group - RASSL" <bmsg-rassl@googlegroups.com> wrote:
Further, loans of $9.5 billion was hidden. They were direct borrowings by
CPC, CEB, Srilankan airlines, etc. so they were not included in the central
bank figure. But since these are loss making, the Treasury underwrites
them and must show in the total loans. An accounting trick by the
accountant turned UNP provincial council politician, later central bank
governor!
A more relevant measure is the debt service ratio. When you try to get a
long term loan, the bank checks this. It is the loan repayment and
interest over total state revenue in this case. This was close to 100% in
2012! All government income went on to repay loans and interest like a
family of a drunken husband. This is called the debt trap. These data is
published by the Treasury.
Chandre
On Thursday, October 18, 2018 3:49 PM, "'Dilrook Kannangara' via Strategy, Battle & Military Study
Group - RASSL" <bmsg-rassl@googlegroups.com> wrote:
Take a look at Sri Lanka's borrowings. Total net foreign borrowings from
1948 (or 1833) to November 2005 was $11.3 billion. 2011 net foreign
borrowings was $11.3 billion. This was (supposedly) managed by Basil.
That's just one year. Mind you these are only official figures.
I'm not talking about his alleged corruption. He was called "Mr Ten
Percent" and is facing various massive frauds. Let the court decide that.
Basil and Bathurdeen are accused by Malinda (and Nagananda) for the
destruction of Wilpattu, etc. The case is still going on I think.
He was also involved in allocating a disproportionately large percentage of
borrowings to the north. Humanitarian, etc. matters apart, all borrowings
must be repayable with added state revenue from those investments. The
north did not return a sufficient excess to government coffers to repay
these loans. The key word is sustainable. Unsustainable debt is the reason
we are in an economic crisis.
Everyone knows what political clans are after. We have far too many of
them. Rajapaksas are no different.
my gut feeling is that few outside the family circle know how the rajapaksas think
about politics. so i won't offer predictions now speculate on choices. :)
Looks like Gotabaya and Basil have joined forces against Namal after
Mahinda introduced Namal as his successor to Modi last month. Mahinda
is happy to forego 2019 presidency for his party. Namal can contest in
2024. He can win easily if SLPP does not win the 2019 presidential
election.
On Tuesday, October 16, 2018, 5:34:14 PM GMT+11, Malinda Seneviratne
<malindasenevi@gmail.com> wrote:
So Basil is in the mix, that’s for sure, either as candidate or one of the key
backers of the SLPP candidate and in the event of a victory would be one of the
most powerful individuals in the government that would subsequently be formed,
if not THE most powerful one. A man worth watching for a multiplicity of reasons,
certainly.
https://malindawords.blogspot. com/2018/10/basil.html
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