Re:How China's “debt traps” work
by rfoo on Tuesday October 03, 2023 @11:24AM
(#37753142)
China has
> the money is in an escrow and released as the construction progresses.
too.
The problem is it doesn't work: the fund release schedule can't be perfectly aligned with each stage of the constitution on a cost basis. There's a large amount of unfinished buildings (rather than not started at all) at a certain stage - it's the point when the_amount_of_fund_released - the_construction_cost_so_far is maxed.
I like the USA solution more - no mortgage for unfinished buildings. Developers can still sell it, but good luck.
> the money is in an escrow and released as the construction progresses.
too.
The problem is it doesn't work: the fund release schedule can't be perfectly aligned with each stage of the constitution on a cost basis. There's a large amount of unfinished buildings (rather than not started at all) at a certain stage - it's the point when the_amount_of_fund_released - the_construction_cost_so_far is maxed.
I like the USA solution more - no mortgage for unfinished buildings. Developers can still sell it, but good luck.