Browsing: lending

Until 2019 Africa and china had an eccentric lending experience. This includes the lending spree featuring more than $10 billion a year from 2012 to 2017, higher than $1 billion in 2001, sadly China lending to Sub-saharan Africa has fallen short due to serious defaulting fears.

A detailed study executed by John Hopkins University’s China-Africa Research Initiative pointed out that, debt sustainability concerns have triggered lending to the African government to drop by 30 per cent in 2019.

China—the world top industrial economy has been a close lender to Africa—the world’s top raw material producer and fastest-growing economy over the past decade.

On the side of the fence, according to China’s 2021 White Paper on International Development Cooperation published in January, China has steadily increased the scale and further expanded the scope of its foreign aid, giving high priority to the least developed countries in Africa (Global Times).

Several media …

The private sector is not responsive to the government’s stimulus package as banks report less than desired activities in borrowing. Even though huge fiscal and monetary measures have been taken by the Central Bank, still commercial banks are facing reduced demand on borrowing.

This is evident in weekly turnovers for Interbank trading which is down 92 per cent, the lowest it has ever been over the last decade. Money market analysis for the month of May reported that the Interbank Money Market (IMM) suffered its lowest activities since 2010.

You will recall that 2010 is just two years into the global economic recession that was triggered by among other things, poor lending habits by banks in the US that led to a collapse of the real estate industry.

Numerous banks had to be bailed out just to keep people in their homes as foreclosures were rampant across the country. The …