Chinese Government provides $6.5 million interest-free loan for unspecified purposes

President of the People's Republic of China Hu Jintao made a historic visit to Mauritius on February 16, 2009, in which he pledged, among other things, to loan USD $6.5 million interest-free to the island nation. These deals were signed by Hu Jintao and Navinchandra Ramgoolam, the Mauritian Prime Minister. The project financed with this amount has yet to be identified. The other two pledges made during this same visit are captured in #1156 and #1158.

Additional details

This flow, along with the $5 million captured in #1158 and disbursed at the same time, could be part of a larger Economic and Technical Cooperation Agreement. Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20 years by default and grace period to 10 years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace.

Number of official sources

0

Number of unofficial sources

3