Africa News

Ghana Is Suffering From Cheap Chinese Loans

Ghana is a poor nation in Africa which is deep under loans and it is almost impossible for the nation from the debt trap to which it has fallen into. With the developed nations like US, UK and World Bank refusing to approve any loans for this poor nation, China with their huge foreign exchange reserves has become a savior for this nation.

Of late, China has granted loans worth billions of dollars to Ghana. But experts say that Ghana will have to buy old railway coaches from China. These Chinese coaches were used on Chinese railway tracks for more than thirty years and now China wants to replace them with new, modern coaches.

Ghana was in deep debt of the range of $4 billion and its debt was forgiven by half in the year 2005 by USA and World Bank. But with poverty and inefficient administration, the loan amount has gone back to its original past amount of $4 billion. As a part of this deal, Ghana will have to accept those coaches if they want to have the aid from China.

Experts say that the price at which these coaches are being offered are almost same as the new ones which are available at the European market.

JIT Mukherjii
After completing his MBA in Financial Management, he decided to shift to writing and took it as his full time career. Being the Editor-in-chief of this web magazine, he has got diverse interest in the field of politics and business related matters.

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