Tonga to start repaying controversial chinese loans from 1996 to 2002 that China used to buy its debt and now says were illegal.
The loans were meant to be repaid by 1999 and were worth billions of dollars, when the loans were converted into loans worth thousands of thousands of dolla영양안마rs everym카지노 time the Chinese bought debt.
‘It wasn’t a good deal for us’
The payments were to a bank owned by China’s then-government for a government-backed loan, and then paid out by banks in the United States.
The loans were used by China to buy many US Treasury securities and loans to many other countries in the 1990s and early 2000s in order to boost demand in the US for debt.
“It was a bad deal for us when we used them, because they made a lot of money for China and for them but not for us,” Mr Tona said.
Image copyright Getty Images Image caption President Hu Jintao said the loans were an “accident”
Mr Tona said the loans gave “a subsidy” to China, and was not necessary because the loans were given in exchange for other projects.
He said the money was used in exchange for building projects such as a golf course in the Philippines for which the loans were paid off.
But a spokeswoman for China’s foreign ministry told the BBC that it was not China’s responsibility for the loan payments made.
She said: “The Chinese side 경주출장안마has the right to negotiate with any government in the world, and they had always done so.”
Mr Hu said the loans were a “tragedy”.
“At least we had a loan guarantee, then we started paying a lot more, a lot more, so then you don’t get any more,” Mr Hu told a news conference after the deal was signed on Tuesday.
Mr Hu said the loans were designed to benefit both sides.
“This is why we always said the loans should be repaid in one lump sum in two or three years, I’m sure,” he said.
Earlier this year, China said that it intended to build a $12bn (£8.6bn) golf course in the disputed Spratly archipelago, but the Philippines said it rejected the $1bn figure.