Why are African countries willing to accept Chinese loans when they are not seen as sustainable?
Many Chinese loans have higher extended interest rates and short maturities, with heavy collateral that includes commodities, or even important strategic foreign infrastructure.
The authors of the report note that China has started talking about being more transparent and sustainable on their loans in the future. But no clear evidence of this taking place has yet to materialize.
Looking at the quote above, it seems that the terms of the loans are not very favorable, yet a lot of African countries are accepting these loans in mass, is there a reason for this? Why are countries willing to risk ending up in a debt trap?