EIB raises concerns over China?s loans to Africa

European Investment Bank president Philippe Maystadt expressed concern that China?s lending policy for Africa could result in unsustainable debt levels. “For some African countries, if funding comes too easily, they are at risk of running up excessive debts,” Maystadt remarked. He also noted the increasing competition between the agency and Chinese banks in Africa. “There’s been a few projects (in Africa) that we were working on and which in the end were financed by Chinese banks.” The EIB chief said he ?would like to open a dialogue with Chinese banks, especially the Chinese Development Bank.” He nonetheless maintained that the “growing presence of Chinese banks in Africa” is “a good thing because financing needs are enormous.” (Source: European Investment Bank criticises aggressive Chinese lending in Africa/Agence France-Presse)

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