Kenya hopes to extend the repayment period of $ 5 billion in Chinese debt

Kipchumba Murkomen, the Minister of Transportation, said the government plans to negotiate with China to extend the repayment period for its US $ 5 billion loan for the construction of a railway.

According to Bloomberg, Muerkomon said on Wednesday (October 19) in a confirmation hearing held in the Kenya capital Nairobi that the loan of China import and export bank loans expired within 15 to 20 years is stiflingKenya's economy.

He said that if he can try to re -negotiate and extend the repayment period to 50 years, it will reduce the burden of repayment so that the government can use money for other parts of economic development."We are choked by loans."

This railway line that allows Kenya is part of the China Belt and Road Initiative, connecting Nairobi and East Africa's largest port Monbara.It is also the largest infrastructure project since Kenya since the United Kingdom's independence in 1963.In order to reduce operating costs, the Kenyan Railway Corporation also took over the operation of the railway line from the African Star Railway Operation Company, a subsidiary of China Road and Bridge Group.

Murkomon said that the use of short -term funds to build long -term projects such as railways has led to mismatches of funds.He also said that the railway has not yet achieved a balance of revenue and expenditure, and even after 50 years, it cannot achieve a balance of revenue and expenditure. "It is impossible to pay this loan from the income of the railway."Murkomon also promised at the hearing that a contract of the railway project will be disclosed; a judge of the Kenyan High Court has previously ordered the Ministry of Finance to disclose the trading clause.

Kenya is in high risk debt troubles.According to data from the Ministry of Finance of Kenya, the country's debt in June was 85,800 billionth (about 100.9 billion yuan), which was about two -thirds of its GDP.

China has been the main creditors of many African countries. In the past 20 years, the scale of China's investment and borrowing in these countries has continued to expand.In August of this year, China announced the exemption of 23 debt in 17 countries in Africa, but it did not disclose the exempted debt details and amounts.