A Chinese-Built Highway In Montenegro Has Bankrupted The Country

An aerial view shows part of a highway near Podgorica, the capital of Montenegros. The highway project, constructed by a large Chinese state-owned company, risks derailing Montenegro's economy. Savo Prelevic/AFP  

NPR: How A Chinese-Built Highway Drove Montenegro Deep Into Debt 

PODGORICA, Montenegro — The section of highway that threatens to cripple Montenegro's economy begins in the foothills outside the capital Podgorica, where scaffolding lines a multi-lane expressway closed off to the public. The highway ends, for now, in the remote mountainous terrain east of the city. 

The Chinese state-owned company hasn't finished construction yet, so cars are using the old road underneath it. The highway hasn't been paid for yet, either. The first installment of the $1 billion loan from a Chinese state bank is due in July, and it's unclear whether Montenegro, whose debt has climbed to more than a 100% of its gross domestic product due to this project, will be able to afford it. What's worse, says the country's former Justice Minister Dragan Soc, once completed, the road won't lead anywhere anyway. "We make a joke: It is a highway from nothing to nothing," he says.  

Read more ....  

WNU Editor: What is particularly galling about this situation is that Montenegro now wants Europe to pay-off their unsustainable Chinese debt .... Montenegro in 'final phase' of talks with Europe to cut China debt (Reuters), while at the same time pushing for EU membership .... Montenegro aims to become EU member in 2024 (BNE). 

My advice to the EU is to take your time. The culture of corruption in the Balkans is deeply rooted, and you need to give them the time to undertake the necessary anti-corruption measures and legal reforms before admission.

from War News Updates https://ift.tt/3w2wI6Y
via IFTTT