Recovery of loans may be difficult due to the corona pandemic crippling world economy.
Beijing (China) – China provided economic assistance to 150 countries, amounting to Rs. 120 lakh crore. Recovery of these loans may not be possible. Coronavirus pandemic paralysed the world economy resulting in this crisis. China is helpless and granted more time for repayment of the loans.
China provided economic assistance to Pakistan, Sri Lanka, Maldives, and, many countries in Africa regions. Pakistan demanded an extension of ten years for repayment. Pakistan is in a military alliance with China, hence, though faced with loss, China cannot refuse the extension.
China postponed the repayment of loans of 77 countries. Forty countries are from the Africa region. These countries are unable to make the repayment of loans, China is aware of this. China projects to the world as ‘Big Brother’ announcing concessions to these countries.