AidData published in February 2022 a study titled "Is Beijing a Predatory Lender? New Evidence from a Previously Undisclosed Loan Contract for the Entebbe International Airport Upgrading and Expansion Project" by Brad Parks, Ammar A. Malik, and Alex Wooley.
AidData's publication of the final, unredacted version of a controversial $200 million loan contract between China Export-Import Bank and the government of Uganda for the Entebbe International Airport Upgrading and Expansion Project reveals that the airport itself is not a source of collateral that the lender can seize in the event of default.
Instead, China Export-Import Bank required the borrower to provide a fully liquid cash deposit in an escrow account that the lender can unilaterally seize in the event the government of Uganda defaults on its repayment obligations. AidData concluded that Chinese lenders have no desire to seize assets but they are looking out for their own interests. This loan contract does not support the charge of predatory lending but does contain intrusive conditions.
