A Chinese bank clerk shows off 10,000 Japanese Yen notes among the stacks of 100 yuan notes, at a bank in Huaibei, China on May 29, 2012. China’s lower and longer-term rates make it more attractive to African countries for debt refinancing. PHOTO | AFP
Some African countries are now seeking to write off their loans from China while others are offering concessions using their natural resources and assets to manage their ballooning debt.
A new report by the US-based Centre for Global Development shows that China’s loans to Africa, currently standing in excess of $14 billion, continue to rise, putting a strain on borrowers and posing the risk of default.
