KATHMANDU: Tanzania President John Magufuli has cancelled a Chinese loan worth $10 billion saying that the terms of the Chinese loan agreement could only be accepted by a drunken man.

The aforesaid loan had been signed by his predecessor Jakaya Kikwete to construct a port at Mbegani creek in Bagamoyo.

His predecessor, Jakaya Kikwete had signed the deal with Chinese investors to build the port on condition that they would get 30 years to guarantee on the loan and 99 years uninterrupted lease, according to local media reports.

Labeled as the “killer Chinese loan”, several organizations and African citizens had demanded the then President to cancel the agreement.

They had warned that the move would have dire consequences but their concerns were overlooked and the deal was signed.

However, after coming to power, President Magufuli initiated the renegotiation process and pressed the investors to bring down the lease period to 33 years instead of 99 years signed by the previous government

The investors didn’t meet the deadline issued by the Magufuli government as a result of which the agreement was canceled.

China has often been accused of luring the poor African countries in its debt-trap by providing them loans for much-needed infrastructure projects and then control them when they fail to pay off their debts.

(With inputs from Agencies)