Hayo madeni unayosema kutoka nchi zingine, yana tofauti kubwa sana na madeni ya China. China iliwapa commercial loans with commercial terms and conditions. AfDB na hao wengine waliwapeni concessional loan. Which is a loan with a modest covenants. This is why since you started to hear about AfDB advancing loans to many countries, you never heard about attaching or foreclosing (one) countries assets like what happened in Zambia, Sri Lanka etc. No wonder the Washington Concessors and Bretton Woods warned you about taking excesssive loans from China. They are surely know the aftermath of the Chinese loans. But all I can say is that, the country is in a big trouble, coz the Chinese loans are having a scheduling interest rate. When you are borrowing, you think that, you will be capable to repay. But once the due date is around the corner, things become different. Again since the beginning of the operation of SGR, it has never been servicing its opex. The GoK has to take money from her coffers to run the project. And I'm sure, the situation has never changed.
Where are you basing the notion that sgr is not meeting its opex costs from? Do you have evidence or are you relying on a report from media about its operations in year 1 half of which only 1 train was running in a day?
According to released figures it makes 1.8b a month at current operations more than the 1b twisted media costs that you are relying on. Therefore its actually running at 80% profit margin!
it seems like your smart than daily nation reporter. utafiti ujibiwa na utafiti wala sio person opinion. it's matter of time , let wait and see wachina wakichukua KQ, port na wakenya wawe manamba waoKenya never defaults.
eliakeem btw Uhuru kusafiri Uchina na kusign biashara ya maparachichi ni a major ongoing discussion pale jukwaa la siasa na the comments are very positive concerning Kenya whilst vile and bitter on Jiwe and his policies.
it seems like your smart than daily nation reporter. utafiti ujibiwa na utafiti wala sio person opinion. it's matter of time , let wait and see wachina wakichukua KQ, port na wakenya wawe manamba wao
Ahaaa haaa haaa
Now why the KQ forced the lenders to be shareholders. For which the lenders are not happy coz the hold stake in a loss making asset.
I appreciate my grammar is very poor. it's seems like your current working with Kenyan government that's why your acting like blind person. simply I say " wakati wa kula hakuna kuongea". unadhani watu wote wanaotoa tahadhali kuhusiana na mikono kenya na China hawawatakii mema. muda ni shahidi mwema ngoja tuone uhai tuoneI don't doubt I am.
I also don't think you are very good in English. The Daily Nation report says 'if the government defaults'.
Not 'when the government defaults'.
When you say its a matter of time, you are exposing your lack of understanding of grammar.
Kenya has never defaulted. Kenya never defaults.
Are you the lenders' spokesperson?
Wrong!Good.
Now you r coming.
I can briefly and simply attempt like this
1. The loan starts to accumulate the interest immediately after the first draw down.
2. Grace period is normally applied in project financing kind of facility. The project which will service the loan by itself. It has a full to a limited recourse. During the grace period the loan plus the interest is not supposed to be paid but will be deferred payment. Meaning that, the payments which were supposed to be paid when the construction is not due, will be postponed until the project starts to operate. The bottom line is, the grace period also accumulates interest, but the difference is no payment will be done until the facility starts to work.
Wrong!
Grace period is determined by the terms of the loan! One may or may not accumulate interest during grace period depending on what was agreed during loan negotiation. The SGR loan was attached to the project and as a condition by China was to be built by a chinese company, therefore the grace period was agreed upon like that so that we can start accumulation intrest after the construction had ended and not when the loan was signed...
In Kenya's case there won't be interest accumulating during the grace period!, interest will start to be counted after the grace period ends.
Suffice it to say, you are not taking me anywhere, Mr. I know what finance jargon
I appreciate my grammar is very poor. it's seems like your current working with Kenyan government that's why your acting like blind person. simply I say " wakati wa kula hakuna kuongea". unadhani watu wote wanaotoa tahadhali kuhusiana na mikono kenya na China hawawatakii mema. muda ni shahidi mwema ngoja tuone uhai tuone