MONROVIA, LIBERIA-The President of the World Bank has told ELBC that he is concerned about some of the loans China has been given to developing economies in Africa.
Davis Malpass says the terms and conditions need to be “more transparent.”
It comes amid worries that countries, including Ghana and Zambia, are struggling to repay their debts to Beijing, though China says any such lending is done within international rules.
Developing countries often borrow money from other nations or multilateral bodies to finance sectors that will grow their economies through infrastructure, education and agriculture.
However, steep increases in interest rates in the United States and other major economies over the last year are making loan repayments more expensive, because lots of that borrowing is done in foreign currencies such as US Dollars and Euros.
The BBC says it is a particularly acute problem for developing economies that struggle to find extra money required, as the relative value of their own currency falls.
By: Kollubah Zayzay
