Kenya’s chances of defaulting on debt now high, says IMF

[Kadudu]

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Treasury hopes to fund future projects using cheap loans from development partners such as the World Bank and IMF,....

And Pundit keeps on talking of "cheap loans" from the Chinese. The game is over with those loans from China for major infrastructure projects like SGR. Btw, Uhuru failed on his last trip to convince the Chinese to fund the SGR extension from Naivasha to Kisumu and the Transport CS told us it was just the missing few dots and the signatures will appended in "the next few days". It is now months ago and no word on the financing of that project.

https://www.standardmedia.co.ke/business/article/2001300281/kenya-now-more-likely-to-default-loans-imf

[RV Pundit]

We can always ask China or any lender to reschedule repayment. Ethiopia did that for their SGR loans.

[hk]

We can always ask China or any lender to reschedule repayment. Ethiopia did that for their SGR loans.

Yes but at a higher interest rate. If it was 400 basis points above libor it'll be 600 basis points. This just exacerbates the situation, if the government cant make tranche payments the extension or rollover is always at a higher interest rates.

[Georgesoros]

We can always ask China or any lender to reschedule repayment. Ethiopia did that for their SGR loans.

Yes but at a higher interest rate. If it was 400 basis points above libor it'll be 600 basis points. This just exacerbates the situation, if the government cant make tranche payments the extension or rollover is always at a higher interest rates.

"Economy will outgrow the borrowing" Pundit.
Five years ago when auditor general pointed that we were borrowing too much, he was almost lynched by jubilee.

[Kadudu]

"Economy will outgrow the borrowing" Pundit.
Five years ago when auditor general pointed that we were borrowing too much, he was almost lynched by jubilee.

Someone once said "hope is not an economic policy". Jubilee had been hoping by 2018 Kenya would be an oil exporting country earning hard currency. We now know this will not be the case in the next few years. As the country stumbles economically a few individuals in Jubilee or close to Jubilee leadership have made a killing.

[RV Pundit]

You've been waiting for economy to collapse since 2006 when Odinga fell out with Kibaki.

"Economy will outgrow the borrowing" Pundit.
Five years ago when auditor general pointed that we were borrowing too much, he was almost lynched by jubilee.

Someone once said "hope is not an economic policy". Jubilee had been hoping by 2018 Kenya would be an oil exporting country earning hard currency. We now know this will not be the case in the next few years. As the country stumbles economically a few individuals in Jubilee or close to Jubilee leadership have made a killing.

[KenyanPlato]

This matters less the shilling is be9ng defended like Chinese yuan

[Georgesoros]

You've been waiting for economy to collapse since 2006 when Odinga fell out with Kibaki.

"Economy will outgrow the borrowing" Pundit.
Five years ago when auditor general pointed that we were borrowing too much, he was almost lynched by jubilee.

Someone once said "hope is not an economic policy". Jubilee had been hoping by 2018 Kenya would be an oil exporting country earning hard currency. We now know this will not be the case in the next few years. As the country stumbles economically a few individuals in Jubilee or close to Jubilee leadership have made a killing.

Well its has not outgrown borrowing!!!

[RV Pundit]

Thanks to that borrowing - GDP has grown from around 15B to now 90B - six times - while KADUDU and others are still patiently hoping for it to collapse. I think it has grown largely by leveraging cheap chinese moner.

Well its has not outgrown borrowing!!!

[Kadudu]

Pundit, I never said the economy will collapse but could do better without this exagerated looting ofpublic resources.
Btw, it has been mentioned several times here that Chinese loans are not cheap and you still tend to mention it. When will you learn to think rationally?

Thanks to that borrowing - GDP has grown from around 15B to now 90B - six times - while KADUDU and others are still patiently hoping for it to collapse. I think it has grown largely by leveraging cheap chinese moner.

[RV Pundit]

Mentioned by who? When will you learn to have independent mind. Chinese loans are as good as IMF/WB loans. Majority of them are zero interest concessional. Let not talk about grants...like Nairobi by-passes or Kasarani stadium or additional lane from JKIA to Gigiri. The evidence of Chinese engagement in Africa - is there to see - from Kenya to Ethiopia to Zambia to name them -- China has done in a generation - what western world failed here. And this they have done by being genuinely interested in Africa development and have worked a win-win deal that deals with Africa famously corrupt leaaders - by always insisting on Chinese contractors doing the job.

Pundit, I never said the economy will collapse but could do better without this exagerated looting ofpublic resources.
Btw, it has been mentioned several times here that Chinese loans are not cheap and you still tend to mention it. When will you learn to think rationally?