This followed a parliamentary probe that concluded that Exim Bank had imposed onerous conditions on the loan, including potential forfeiture of the airport in case of default. The Chinese embassy in Uganda rejected the allegations.https://www.reuters.com/markets/rates-bonds/china-rejects-allegations-it-may-grab-ugandan-airport-if-country-defaults-loan-2021-11-29/ …
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Whilst conditions of the loan have not been made public, lawmaker Joel Ssenyonyi, who helped to conduct the investigation, said China Exim Bank has approval powers over the airport's annual budgets and allow China to "grab" the airport in case of default.
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Entebbe airport revenues are deposited in an escrow account where all withdrawals have to be sanctioned by Exim Bank and any dispute arbitration or court proceedings is to take place in China under Chinese law, according to
@Reuters.Näytä tämä ketju -
An
@AidData report revealed that 44% of loans from Chinese state-owned lenders was collateralised to the end of 2017, and that banks often require borrowers to maintain a minimum cash balance in an offshore bank account that the lender itself controls.https://www.ft.com/content/297beae8-7243-4d93-9fac-09e515e82972 …Näytä tämä ketju -
However,
@AidData executive director Brad Parks warned against the “media myth" that Chinese commercial and policy banks tend to collateralise on physical assets across the Belt and Road. The latest research suggests that the collateralisation of liquid assets is most common.Näytä tämä ketju
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