African nations see China as the best source of financial support to develop their economies, despite many seeking to restructure existing debt with the country. Heavily indebted Ethiopia and Zambia. have asked China for debt restructuring, while Angola and Congo Republic are believed to have done so. The IMF said Cameroon, Ghana, Djibouti and others face the strong possibility of debt distress, yet many still saw China as offering better terms than Western banks. For instance, Djibouti borrowed $620m at 9% from seven banks over nine years, but its first Chinese loan was for $268m at 2.85% over 20 years.
African nations see China as the best source of financial support to develop their economies, despite many seeking to restructure existing debt with the country. Heavily indebted Ethiopia and Zambia. have asked China for debt restructuring, while Angola and Congo Republic are believed to have done so. The IMF said Cameroon, Ghana, Djibouti and others face the strong possibility of debt distress, yet many still saw China as offering better terms than Western banks. For instance, Djibouti borrowed $268m at 9% from seven banks over nine years, but its first Chinese loan was for $620m at 2.85% over 20 years.