Article

2020-08-07 India-Pakistan

Pakistain Borrows $1 Billion from Chinese Peter To Pay Back $1 Billion Saudi Paul

Clearing the decks for action now that they’re teaming up with China and Iran? Given that, like the Palestinians, whenever there is a choice they make the wrong one, this should prove interesting for all involved.

[DAILYTIMES.PK] Pakistain has paid back a $1 billion loan to Soddy Arabia
...a kingdom taking up the bulk of the Arabian peninsula. Its primary economic activity involves exporting oil and soaking Islamic rubes on the annual hajj pilgrimage. The country supports a large number of princes in whatcha might call princely splendor. When the oil runs out the rest of the world is going to kick sand in the Soddy national face...
. The country paid back $1 billion out of a $3 billion loan that it secured one and a half years ago to avoid default on international debt obligations.

According to the Pak Ministry of Finance and the State Bank of Pakistain (SBP), Pakistain has taken the loan of $1 billion from China to pay back the Saudi Arabia loan.

In October 2018, Saudi Arabia had agreed to provide the financial package of $6.2 billion to Pakistain for three years. This included $3 billion in cash assistance and $3.2 billion worth of annual oil and gas supply.

As per the agreement, the Saudi cash and oil facility was for one year with an option to roll over the amount at the end of the year for a period of three years. Pakistain was paying 3.2 percent interest on the $3-billion facility, according to the information that the Ministry of Finance.

In its report in April this year, the International Monetary Fund (IMF) stated that "Saudi Arabia also refinanced $3-billion BOP (balance of payments) support loans that matured in November (2019)-January (2020)." However,
it was a brave man who first ate an oyster...
the repayment of $1-billion loan within six months of its renewal was surprising.

Posted by Fred 2020-08-07 00:00|| || Front Page|| [22 views ] Top
File under: Commies

#1 It fits with the new de facto alliance of China, Pakistan and Iran.

Posted by 3dc 2020-08-07 00:31|| 2020-08-07 00:31|| Front Page Top

#2 Headline in a few years: China Repossess Pakistan. No One Cares.

Posted by Hupinens Juling5588 2020-08-07 01:44|| 2020-08-07 01:44|| Front Page Top

#3 Whenever large sums move around you can count on there being someone in the middle that's skimming off the top.

Posted by AlanC 2020-08-07 07:17|| 2020-08-07 07:17|| Front Page Top

#4 Skimming

Posted by Skidmark 2020-08-07 08:25|| 2020-08-07 08:25|| Front Page Top

#5 China, Pakistan & Iran, huh? I thought China was supposed to be smart (not like everybody says... like dumb). Pak I can at least understand from the point of surrounding mutual-enemy India, but Iran?

Posted by Spot 2020-08-07 08:50|| 2020-08-07 08:50|| Front Page Top

#6 Oil, and to poke the US

Posted by Frank G 2020-08-07 09:12|| 2020-08-07 09:12|| Front Page Top

#7 Chinese folks WILL extract (and/or extort) interest. They don't ascribe to the traditional mooselimb lending policies.

And they'll act like loan sharks, complete with the nifty knee-capping, only on a grander scale.

Posted by Mullah Richard 2020-08-07 09:55|| 2020-08-07 09:55|| Front Page Top

#8 Making a deal with the devil and you get what you pay for: financial hell to pay.

Posted by Alaska Paul 2020-08-07 10:40|| 2020-08-07 10:40|| Front Page Top

#9 Makes you wonder if the Saudis wanted to take some of their collateral home, i.e. the nukes that SA paid Pak to develop.
?

Posted by ed in texas 2020-08-07 11:54|| 2020-08-07 11:54|| Front Page Top

#10 #2: Headline a year after that: China repossesses Pakistan, racked with regret.

Posted by Tom 2020-08-07 16:09|| 2020-08-07 16:09|| Front Page Top

#11 China repossesses Pakistan, racked with regret.

They can't possibly do worse that the current owners.

Posted by trailing wife 2020-08-07 19:29|| 2020-08-07 19:29|| Front Page Top

00:28 Angealing+B.+Hayes4677