Chinese loan will drown the economy of many countries, poor countries are being hit like this

China showed mercy to the countries suffering from economic recession and gave them loans. Because of which now foreign loans have come down by hundreds of billions of dollars.

The loan given by China to many poor countries including Pakistan is wreaking havoc. Due to which the rest of the countries have to bear the brunt. China showed mercy to the countries suffering from economic recession and gave them loans. Because of which there has now been a reduction of hundreds of billions of dollars in foreign loans. If this continues, there is a possibility of economic instability in many countries in the coming times.

According to the Associated Press, China has given loans to a dozen countries including Pakistan, Kenya, Zambia, Laos and Mongolia to overcome the economic downturn. But these countries which are facing economic recession are not able to control their economy. Also, now it is becoming difficult for them to repay this loan as well. In such a situation, foreign exchange reserves are also decreasing. Which will directly affect the economy of many countries.

China gave loan many times

China is now thinking of forgiving more than a dozen countries to whom it showed its kindness and gave loans. China had given loans to these countries to keep schools open, electricity, food, drink and to generate revenue. Along with this, it was also said that after the economic situation improves, he will return this loan with interest. But countries like Pakistan, Kenya have not been able to recover on their own so that they can repay the loan. In such a situation, China is thinking that it should forgive this debt.

At the same time, there is also a shortage of money in the foreign exchange reserves. Recently, China has given extra time to Pakistan to repay the loan of $ 2 billion. People in Pakistan do not have money to eat, they can repay the loan. Despite this, China has come forward many times to help Pakistan.

Poor countries are suffering like this

According to the Associated Press, China has given foreign loans of up to 50% to these countries. To pay for which the country was ready to give the total amount of its revenue. But revenue is not being generated in the country which is facing economic crisis. Because of which they are being declared default. Let me tell you, Zambia and Sri Lanka have already entered the list of loan default countries.

The situation in Pakistan is also not good. Lakhs of textile workers have been fired there. According to the information, the reason behind doing this of Pakistan is to save electricity. In Kenya too, thousands of civil workers have not been paid their salaries for several months. According to the Kenyan government, she is depositing this money to repay foreign debt.