12 votes

How a Chinese-built highway drove Montenegro deep into debt

3 comments

  1. [3]
    vegai
    Link
    "A copy of the loan contract reviewed by NPR shows that if Montenegro is not able to repay China's state-owned Export-Import Bank on time, the bank then has the right to seize land inside...

    "A copy of the loan contract reviewed by NPR shows that if Montenegro is not able to repay China's state-owned Export-Import Bank on time, the bank then has the right to seize land inside Montenegro, as long as it doesn't belong to the military or is used for diplomatic purposes."

    6 votes
    1. [2]
      ducc
      Link Parent
      "In addition, Montenegro's former government signed off on allowing a Chinese government court to have the final say on the execution of the contract." I think it's fairly obvious why the bank...

      "In addition, Montenegro's former government signed off on allowing a Chinese government court to have the final say on the execution of the contract."

      I think it's fairly obvious why the bank lent Montenegro the money. I may be wrong, but don't Chinese firms have a history of doing things like this? I couldn't find any examples because I didn't know what to search, but I'm fairly certain I've heard of this happening before.

      EDIT: The article does mention basically the same thing happening with roads and highways in Greece.

      5 votes
      1. georgebcrawford
        Link Parent
        There's a lot of concern about this happening in Africa and the Pacific. I'm from NZ and am currently listening to a podcast about China's influence. They spoke to a bloke in charge of setting up...

        There's a lot of concern about this happening in Africa and the Pacific. I'm from NZ and am currently listening to a podcast about China's influence. They spoke to a bloke in charge of setting up an iwi (tribal)-owned ISP. The NZ govt wouldn't come to the party, but China loaned them $6m on the back of a 30-minute meeting. The iwi struggled to pay back the loan at first, but the Chinese were fine about it. Very different from lending governments money, but there is a lot of Chinese money going into economies around the world.

        6 votes