Kenya wants to convert part of its US dollar debt into Chinese yuan. Other African countries could also turn away from the US dollar in their debt policy. US President Donald Trump's policies are reinforcing the trend.
By Julian Hilgers
Debt arises when money or resources are borrowed and have to be repaid at a later date, often with interest. They enable short-term investments or purchases, but carry the risk of financial burdens if repayment cannot be made as planned. Responsible handling is therefore crucial. Read the latest news on debt from the Table.Briefings perspective here! What is debt? Debt occurs when an individual, company or government borrows money or other resources from a creditor and agrees to repay them at a later date, often with interest. Debt can take various forms, including loans, bonds, mortgages or outstanding bills. The debtor, i.e. the person who takes on the debt, receives immediate funds or goods, but must make a commitment to repay these funds in the future. This can lead to regular payments which, in addition to the amount borrowed, also include interest, which serves as compensation for the creditor forgoing the immediate use of his capital. Debt can be both positive and negative. It enables investment and consumption that would otherwise not be possible, but can also lead to financial difficulties if the debtor is unable to meet their obligations.
