loan

EXPLAINER

China and Sudan signed off on a waiver of $50m as Sudan’s military-led government seeks support amid Western sanctions.

China has waived loans worth $50m that it had given to Sudan, the two countries said over the weekend. The agreement comes three years into a war between Sudan’s army and the Rapid Support Forces (RSF) that has shrunk the country’s economy by roughly 40 percent, according to the United Nations.

The sum is small compared with what Sudan owes overall to external governments or agencies, an amount estimated at more than $56bn before the war. But the waiver lands at a moment when Khartoum has few other international lenders extending any financial support.

China’s relationship with Sudan predates the war by decades, built on oil and infrastructure interests that survived multiple changes of government in Khartoum. But the war has narrowed Sudan’s options elsewhere, as Western governments have largely held back or imposed sanctions.

Here’s why this deal is significant for Sudan and China:

What do we know about the deal?

The signed protocol in Port Sudan cancels four interest-free loans worth 344 million yuan, about $50m, with immediate effect, according to Sudan’s official news agency, SUNA.

Sudan’s Finance Minister Gibril Ibrahim welcomed the move, reportedly saying that China has continued investing in the country throughout the war while Western governments, including the United States and European Union members, have largely held back. Gibril himself was added to the US Treasury sanctions list in September 2025 for his alleged “involvement in Sudan’s brutal civil war and … connections to Iran”.

China’s charge d’affaires in Sudan, Xu Jian, reportedly said at the signing ceremony that China was ready to help rebuild what was destroyed during the war in Sudan.

What’s in it for Sudan?

Sudan’s external debt of more than $56bn before the war is expected to have ballooned since.

The $50m debt relief amounts to not even 1 percent of the total external pre-war debt. In fact, Sudan was close to a far bigger debt write-off in 2021. It was on track with the IMF and the World Bank Heavily Indebted Poor Countries initiative to have more than $50bn of its debt forgiven within three years. The 2021 military coup in October derailed that debt relief plan, and the process was formally suspended a year later.

Still, China’s waiver arrives at a moment of acute need for the country. The war is now in its third year. More than 1.5 million people have been killed, according to the UN, and the war has displaced about 14 million people – about a quarter of the Sudanese population. The World Health Organization says less than 14 percent of health facilities are still functioning. Jobs have vanished in many parts of the country, and the rising cost of living has made it difficult for households to survive.

The Sudanese pound has collapsed since the start of the war. It went from roughly 600 to the dollar before the war to more than 5000 to the dollar by June 2026.

What’s in it for China?

In many ways, Beijing’s decision to waive the $50m loan is in keeping with a broader approach it has taken in recent years, one that has helped cement China as Africa’s largest trading partner for 17 consecutive years.

China has provided interest-free loan forgiveness as a diplomatic gesture to multiple countries, and these decisions are recurrent announcements at Beijing’s frequent leader-level summits with African nations. This is especially true for smaller loans. Research from the Johns Hopkins China Africa Research Initiative found that China forgave at least $3.4bn of these kinds of debts across the African continent between 2000 and 2019.

By contrast, larger loans are usually commercial loans through state banks that come with interest, and waiving those is harder.

At a time when the West is largely trying to isolate Sudan’s leadership, a small loan waiver gives China outsized influence in a country that sits at the intersection of the Middle East and sub-Saharan Africa.

What have China-Sudan ties been like historically?

Oil has long served as a catalyst for their relationship. From the mid-1990s on, China’s National Petroleum Corporation (CNPC) poured billions of dollars into Sudanese oil fields and the pipelines carrying that crude oil to Port Sudan. This was a time when many Western companies were pushed out due to sanctions.

The relationship changed when the southern part of the country voted in favour of independence in 2011. The world’s newest country, South Sudan, left the north and took most of the country’s oil fields with it.

Chinese investment largely dried up afterwards, but Sudan still has more than $5bn of outstanding debt to China. The war has aggravated Sudan’s economic challenges. The CNPC requested a formal exit from Sudan in December 2025.

June 25 (UPI) — The European Union released $3.6 billion in funds of the Ukraine Support Loan for budget and defense needs, the bloc said Thursday.

The funds were released at the Ukraine Recovery Conference, where European Commission President Ursula Von der Leyen announced the funding, which is the first instalment of the new macro-financial assistance. The MFA is a segment of the Ukraine Support Loan, under which $102 billion will be offered to Ukraine in 2026 and 2027.

“As a country at war, Ukraine’s capaicty to defend its territory depends on the rapid availability of critical products in the required quantities and within very short timeframes,” a press release said. “The first instalment of the [$6.8] billion defense package to support drone procurement will be disbursed in the coming days.”

“This is indeed solidarity in action,” Von der Leyen said. “It shows Europe’s support for Ukraine is here to stay.”

The original plan in December was to use Russia’s frozen assets to fund the loan, but the Russian Central Bank sued a Belgian bank over the plan, so the EU had to find a new way to finance the loan.

Instead, they agreed to create the loan through joint debt. Hungary, Slovakia and the Czech Republic negotiated an exemption.

The payments are conditional on Kyiv’s reforms. If Ukraine reverses its ongoing fight against corruption, the EU could suspend the funds, Euro News reported.

The loan also requires Ukraine to buy weapons and ammunition made in Europe, with some exceptions depending on availability.

“Ukraine has the opportunity to analyze the situation on the battlefield and identify the range of products that they need, and then they have to inform us in the form of product schedules,” a Commission spokesperson told Euro News. “The priority remains to make purchases within the EU and Ukraine.”

“We continue to call on all our partners to maintain their support, because a strong and independent Ukraine is in all our interests,” Von der Leyen said Thursday. “Our ambition is not only to help Ukraine endure, it is also to help Ukraine grow and prosper as a free and European country.”

The United States is not expected to contribute funds to the loan.

June 24 (UPI) — On July 1, student loan servicers will begin notifying borrowers enrolled in SAVE repayment plans that they must switch to a new plan and borrower advocates warn that what comes next will likely be an increase in defaults and delinquencies.

Not all borrowers will receive a notice on July 1. In fact, many will not. The notices will be staggered across the millions of people enrolled in the SAVE program over the coming months. Once a borrower receives their notice, the clock starts on a 90-day window for them to enroll in an eligible repayment plan.

If a SAVE enrollee fails to switch to another repayment plan, they will be automatically enrolled in a standard repayment plan, which will carry a higher monthly payment requirement. In many cases, that plan will not be their most affordable option.

Betsy Mayotte, president and founder of the Institute of Student Loan Advisors, told UPI that the borrowers her organization hears from are more frequently expressing confusion over which plan is best for them.

“We’ve seen borrowers whose SAVE payment was $40 and their next lowest payment on a new plan is $400,” Mayotte said.

For many borrowers, they will be able to switch plans directly on the Federal Student Aid website. In most cases, this will be the simplest way to switch, Mayotte said. However, in some cases, this can create problems with unduly high payment requirements due to a glitch in the Department of Education’s website.

People who are married with both spouses having student loans may be assigned double the payment when applying through the Federal Student Aid site, Mayotte said. What the partners would pay together is misapplied to each spouse, effectively doubling their required payments.

What is supposed to happen, Mayotte said, is that the spouses apply together and their payment is “portioned out” considering both of their loans and incomes. Instead, the glitch is causing the amount not to be portioned, requiring each spouse to make that full payment.

Mayotte added that this glitch is not obvious to the borrower when they go through the application process, meaning it can fly under their radar.

In these cases, borrowers are advised to discuss their repayment options directly with their student loan servicer.

Borrowers who do not have new student loans after July 1 will continue to have access to the old income-driven repayment plans until July 1, 2028, when those programs end.

July 1 also brings about the deadline for Parent PLUS loan borrowers to consolidate their loans to be eligible for enrollment in an Income-Driven Repayment plan. New Parent PLUS loans taken out after this deadline, or loans that are not consolidated before it, will not have access to Income-Driven Repayment plans.

For Parent PLUS loans that have been consolidated, borrowers must enroll in an Income-Driven Repayment plan by July 1, 2028, or they will forfeit their eligibility.

Beginning with the coming school year, Parent PLUS loans will be capped at $65,000 total per student with two parents. Each student will have a separate $65,000 cap.

With the SAVE plan’s end, Mayotte said she expects defaults and delinquencies to rise. She said the borrowers who have historically been least likely to default are those who have made 12 to 24 payments consecutively on time.

The COVID-19 pandemic took about 40 million people out of that habit, Mayotte said.

“We had 3 million default in the last quarter of 2025,” she said. “I think the SAVE transition is going to continue that trend because people have no plan they can afford.”

“There are two big factors,” Mayotte continued. “One is lifestyle creep. They haven’t had to pay for two years and lifestyle creep happens. The other thing that’s happened is they were told their payment was going to be ‘x’ on SAVE and they made other financial decisions around that. If you’re told your payment’s going to be $100 on SAVE and then you budget to buy a house — all of the sudden your payment is not $100 a month, it’s $400 a month, you can’t take back that mortgage.”

Meanwhile, the cost of living has increased on all fronts in the United States.

“Payments are resuming at a higher rate for borrowers at the same time health insurance has gone up, gas prices, groceries, produce has gone up like 43% in the last three months,” Mayotte said. “It’s like a perfect storm, especially for low-income and middle-class families as far as expenses go.”

Amy Czulada, senior adviser for outreach and engagement with the Student Borrower Protection Center, told UPI that the difference between the SAVE plan and the next most affordable plans available for enrollees is “astronomical.”

The Trump administration is launching the Repayment Assistance Plan on July 1. It is a new income-based repayment plan approved by Congress last summer. It and the Income-Based Repayment plan will be the only plans based on income available to borrowers starting July 1, 2028, and the only plans for borrowers with new loans after July 1 this year.

About 3 million borrowers are enrolled in income-driven repayment plans that will sunset in 2028.

In its analysis of the RAP plan, the Student Borrowers Protection Center estimates that the average borrower with a college degree will pay more than $4,000 per year more in student loan payments.

“The difference in payments is just beyond anything folks are able to handle at the moment,” Czulada said.

The Student Borrower Protection Center, a student loan borrower advocacy organization, warns that the deadline for borrowers to pick new plans threatens to push borrowers back into a “broken and corrupt servicing system.”

The organization published its report “Repeat Offenders” earlier this month, detailing allegedly illegal acts and practices carried out by student loan servicers that exploit borrowers. Practices such as deliberately long wait times on phone calls, not providing borrowers with all the relevant information they need to plan their payments, illegally denying applications for affordable payment plans and deceiving borrowers to collect maximum interest rate charges.

The report also highlights that student loans changing hands across servicers, along with shifts in the Department of Education, creates opportunities for borrowers to be taken advantage of, have applications lost, payment histories misapplied and other shortfalls in service to borrowers.

“Folks often think they are conversing directly with the Department of Education,” Czulada said. “So there’s a lot of white labeling going on where these contractors are the ones interfacing with, but folks don’t necessarily know or understand that.”

Federal management of student loans is currently being moved from the Department of Education to the U.S. Treasury Department.

“What that has led to is that there’s not really a functioning federal student aid office that can take complaints and really dive into what the issues are,” Czulada said. “Borrowers are left really susceptible to all these practices and limited oversight and accountability.”

In March, the Government Accountability Office issued its review of Federal Student Aid’s monitoring of student loan servicers. It found that the FSA had stopped reviewing the accuracy of servicers’ records in February 2025, because of a lack of staff.

The Department of Education and other government agencies reduced staff broadly in 2025 under recommendations by the Trump administration’s short-lived Department of Government Efficiency, led by the world’s first trillionaire Elon Musk.

Nelnet and Mohela are the largest loan servicers contracted with the Department of Education.

Nelnet manages more than 12 million accounts worth more than $480 billion. It has received $3.1 billion in payments from the department since 2009.

In 2024, a Senate investigation found that more than 1.4 million duplicate student loan records appeared on borrowers’ credit reports when loans were transferred from Mohela to Nelnet. Earlier that year, the company was fined $1.8 million by the attorney general of Massachusetts for failing to keep borrowers in affordable repayment plans, stopping them from progressing toward student loan forgiveness.

Czulada said during the pandemic student loan servicers notoriously allowed borrowers to defer payments or enter forbearance rather than informing them about repayment options that would have counted toward loan forgiveness.

Mohela manages more than 7 million student loan accounts worth more than $318 billion and has received $1.54 billion in payments from the Department of Education since 2011. At least 347,000 of its borrowers are at least three payments behind and more than 75,000 defaulted last year.

More than 41,000 complaints were issued against the company by borrowers last year.

Mohela is rated by FSA as the servicer with the longest wait times for borrowers calling its service lines. Borrowers wait for 13 minutes on average to connect with a representative at Mohela and about 14% abandon their calls before reaching someone.

When callers do get through, Czulada said they are often redirected to other representatives or sent to webpages that do not function.

The American Federation of Teachers filed a lawsuit against Mohela in 2024 and has amended its complaints as recently as January. It alleges that the servicer and five more of the biggest student loan services have engaged in a call deflection scheme and have systemically delivered poor service to customers trying to stay in compliance with loan repayments.

“These companies are just continuing to get more money from the Department of Education for giving us the same terrible service over time,” Czulada said. “This has been really harmful to a lot of people. Like millions of people. Nothing is better evidenced by that than having almost 10 million people in default right now and almost another million careening towards default. In 2020 we also had a record number of people in default before the pandemic began. Moving back to the status quo is also not really an option.”

SACRAMENTO — Gov. Gavin Newsom will propose a new $100-million fund to help wildfire victims afford loans to rebuild their homes under a revised budget plan set to be released Thursday.

The Newsom administration estimates that thousands of victims of the Los Angeles wildfires cannot afford to rebuild, blaming a lack of access to affordable loans and a gap between insurance payouts and the cost to build again.

“We have been on the ground in L.A. since Day One of recovery from these fires, and we aren’t turning our backs now,” Newsom said in a statement. “This community deserves continued support to help them get back on their feet, and rebuild their homes and their lives. “

The new fund would be designed to cover loan-loss guarantee to lenders, in which the state would commit to paying back a percentage of a loan amount if a borrower defaults, in order to lower the risk for lenders and encourage them to award construction loans to borrowers who might not otherwise qualify or only be eligible for loans at high interest rates. The money would also be available for homeowners to buy down their interest rates during the construction period, according to Newsom’s office.

The Eaton and Palisades fires killed 31 people and destroyed over 16,000 structures in January 2025.

A recent survey of the wildfire victims found that homeowners estimate they need more than $600,000 on average above their insurance payouts to rebuild their homes, according to a report from a wildfire recovery nonprofit called the Department of Angels. The gap in Altadena was about $550,000, and between $1.19 million and $1.73 million in Pacific Palisades and Malibu.

Under Newsom, California has also provided mortgage relief to more than a thousand wildfire survivors under CalAssist, a program that provides grants to eligible homeowners to cover mortgage payments for 12 months up to $100,000.

The governor’s new proposal will be included in his funding plan for the upcoming 2026-27 budget year that begins July 1.

State revenue from income tax collection is higher than initially forecast, a boon that is expected to wipe out a projected deficit in the year ahead. Analysts attribute the revenue increase to an artificial intelligence boom in the stock market.

Though likely temporary, the extra funding is expected to give Newsom enough cushion to balance the state budget without major cuts and lower a projected shortfall in 2027-28.

The proposal to create the rebuilding fund requires support from both houses of the California Legislature and would move forward as a trailer bill accompanying the state budget. The funding would be available to disaster survivors, though details on eligibility will be determined during the legislative process.

April 17 (Asia Today) — Corporate loan delinquency rates in South Korea are rising three times faster than household debt, increasing pressure on banks as lending expands, financial data showed Thursday.

According to the Financial Supervisory Service, the delinquency rate on corporate loans at domestic banks reached 0.76% at the end of February, up 0.09 percentage points from a month earlier and 0.08 points from a year earlier.

By comparison, the household loan delinquency rate rose 0.03 percentage points from the previous month to 0.45%, highlighting a much steeper increase in corporate defaults.

The corporate delinquency rate marked its highest level in nine months. Small and medium-sized enterprises recorded a rate of 0.92%, with small corporations at 1.02% and sole proprietors at 0.78%, indicating rising stress across the sector.

Delinquency rates among large corporations also increased, reaching 0.19% – the highest level in 28 months – suggesting that financial strain is spreading beyond smaller firms.

The trend comes as banks expand corporate lending under policies aimed at boosting “productive financing.” Outstanding corporate loans at the country’s five major commercial banks totaled about 859.8 trillion won ($573 billion) as of the end of March, up roughly 15.0 trillion won ($10 billion) in three months.

Loans to small and medium-sized enterprises accounted for about 79% of the total, while large corporate loans made up about 21%.

Regulators said rising delinquencies are most pronounced among smaller firms but warned that broader economic uncertainty could push default risks higher across the corporate sector.

Banks are responding by tightening risk management while maintaining lending growth. Major lenders are strengthening oversight from initial loan screening to post-loan monitoring, using systems such as early warning tools and AI-based credit assessments to identify high-risk borrowers.

Industry officials said the combination of expanding corporate lending and rising delinquency rates is rapidly increasing the burden on banks to maintain asset quality.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260417010005508

A member of Alabama’s 2009 national championship team has been accused of impersonating NFL players as part of a scheme to fraudulently obtain nearly $20 million in loans to purchase real estate, vehicles and jewelry.

Luther Davis, a Crimson Tide defensive lineman from 2007-10, faces felony counts of conspiracy to commit wire fraud and aggravated identity theft, according to court documents filed last month by the U.S. attorney in the the Northern District of Georgia. An alleged co-conspirator, CJ Evins, also faces the same counts.

The documents mention the initials of three players — X.M, D.N. and M.P. — that were impersonated during the alleged scheme. The Guardian is reporting that those players are Green Bay Packers safety Xavier McKinney, Cleveland Browns tight end David Njoku and Atlanta Falcons quarterback Michael Penix Jr.

Prosecutors in the court filings said the NFL players were not involved in the alleged scheme.

The documents describe an elaborate hoax in which the defendants allegedly created fake companies and fraudulent email accounts and driver’s licenses to help fool lenders into loaning them huge sums of money.

Davis attended virtual loan-closing meetings wearing wigs, makeup and/or a head covering to disguise himself as players seeking loans, according to court documents.

Both men entered pleas of not guilty at their arraignments but have indicated to the court they will enter guilty pleas at hearings set for April 27, according to court records.

In 45 games over four seasons with Alabama, Davis registered 21 solo tackles, 26 assists and eight tackles for loss. A 2013 Yahoo report alleged that Davis broke NCAA rules by paying five prospective draft picks from the Southeastern Conference as an intermediary for sports agents and financial advisers.