• zephyreks@lemmy.ca
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    1 year ago

    IMF and World Bank loans in years past have had strict rules regarding economic liberalization and cutting government spending.

    IMF loans are cheaper. Every person with two braincells will realize corrupt officials will take the Chinese loans with higher interest rates because of the bribes.

    [citation needed]

          • zephyreks@lemmy.ca
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            1 year ago

            Rescue loans are not the type of loans being used to build these railway networks lol. It’s pretty funny watching someone not understand the problem they’re talking about.

            Also, the US fed rate is 5% right now… That means loaning money to the safest and most stable economy in the world pays 5% today. Even in your (misguided) context, 5% is a fucking bargain.

            • fedfedfedd@lemmy.ml
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              1 year ago

              Rescue loans are not the type of loans being used to build these railway networks lol.

              Do you even know how IMF rescue loans work? Did you try Google buddy?

              I wont even entertain your dumbass ramble about different countries because we arent talking about that.

              • zephyreks@lemmy.ca
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                1 year ago

                Great, so you neither understand project funding nor interest rates. Good to know.

                • fedfedfedd@lemmy.ml
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                  1 year ago

                  so you neither understand project funding nor interest rates

                  You cant even provide facts. Stop arguing in bad faith. Now go schizo post about US loans.

                  • zephyreks@lemmy.ca
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                    1 year ago

                    A rescue loan is not a loan used to build infrastructure. They’re used to cover for existing debt, not to take on new debt.

                    The interest rate of loans is dependent on the international market. A loan with an interest rate of 5% is charity because China could get that exact same return from the US (which is much more stable, etc. etc.)

                    A 5% interest rate loan isn’t predatory in this economic environment. It’s a fucking donation. Ever heard of risk-adjusted returns?