Great News To African Countries From China After Its Latest Declaration
View pictures in App save up to 80% data. China is the second-biggest economy in the world after the United States of America. This means that it is one of the most developed countries in almost every sector. In terms of technological advancements, China is far developed compared to many countries.
This has made China invest in developing countries by constructing infrastructure such as roads, railway lines, and most importantly lending loans to boost their economies.
According to Fitch Ratings, which is a credit rating agency that rates the viability of the investment, reported on Wednesday that China is pledging to relieve some debt burden to some countries which are struggling because of the coronavirus pandemic.
Also, China's participation in the G20 meeting which is composed of the great 20 economies will see the debt service suspension initiative suspend the debt repayment for some time between May and December.
The debt service suspension initiative's main aim is to suspend debt repayment for some time until the time when the condition will be best for repayment.
China is owned by many countries such as Kenya, Ethiopia, Cameroon, Zambia, Pakistan, Angola, Mozambique, Congo, and many other developing countries. This are some of the countries which are eligible for debt relief.
Some few weeks ago the President of China also stated that his country is seeking to work closely with Africa to ensure development is brought into the continent and assist Africa to recover from the economic disruption brought about by the Coronavirus Pandemic.
This is good news for all the countries that own China and a good move from China especially in this difficult period of Coronavirus.