This is for
@Anants @Ajatshatru and all the folks who were thinking Pakis will get J-35 soon. Here is the recent news about the deep shit Pakis are in. Use VPN.
Loans in Chinese yuan to prevent forex dip; Both sides yet to decide on interest rate issue; Funds will boost forex
tribune.com.pk
Some important snippets from the article.
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Before Chinese used to give dollars to their pet Porkistan now they only give loans in their own currency RMB and of course Porkis are spinning it as decoupling from American dollar as the reason which is hilarious. Now the problem with lending in RMB is Porkis cannot use it for trade with other countries. They only have to use this loan to buy Chinese products. It's a double whammy for Chinese. If Porkis use the entire loan to buy Chinese products and the return the loan with interest, Porkis would have injected 200% of the loan + interest into Chinese economy.
And drumroll, what is the interest rate?
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For a $3.7 billion loan given in RMB the interest rate is 7.5% which comes to around $275 million. Chinese are very smart. They know how to milk their pet to the last penny.
And guess what, most of their forex is built up by loans and lending. With recent IMF loan their forex went from $10 billion to $11 billion.
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And their "Iron brother" is taking full advantage of it. They are in far deeper shit than you realize.
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As far as some report saying they will get $20 billion, all I can say it is just a report. World Bank is way more stricter in lending and World Bank funds specific projects. When they are already in IMF program it becomes even more difficult to get a World Bank loan. Their big daddy Uncle Sam is keeping them on a leash through IMF and World Bank without opening their own wallet.
They are on a borrowing spree forever now to keep their forex at a certain level. They are walking on a thin ice. Their J-10s were also bought on a loan which they are paying over 10 years. They can't afford a war for a week let alone a full fledged one. That is why I want GoI to inflict more damage as and when required.