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Overview

MOFCOM forgives $1 million of Liberia's outstanding debt obligations (Linked to Record ID#43602)

Commitments (Constant USD, 2023)$1,661,565
Commitment Year•2007Country of Activity•LiberiaDirect Recipient Country of Incorporation•LiberiaSector•Action Relating To DebtFlow Type•Debt forgiveness

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2007
Start (actual)
Feb 1, 2007
End (actual)
Feb 1, 2007

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

Government Agencies

  • China Ministry of Commerce

Receiving agencies

Government Agencies

  • Government of Liberia

Loan desecription

MOFCOM forgives $1 million of Liberia's outstanding debt obligations (Linked to Record ID#43602)

Narrative

Full Description

Project narrative

On February 1, 2007, Hu Jintao, Chinese Prime Minister, signed an agreement to forgive $1 million and RMB 80 million of outstanding debt owed by the Government of Liberia to the Chinese Government. These debts were incurred through 3 interest-free loans contracted before December 31, 2005. According to the IMF, China's cancellation of these loans represented 100 percent of its outstanding claims due before December 31, 2005. Record ID#43602 captures the forgiveness of RMB 80 million of outstanding debt to the Chinese Government. Record ID#1648 captures the forgiveness of the $1 million of outstanding debt to the Chinese Government.

Staff comments

SAIS-CARI reports that an additional $10 million may have been forgiven in 2006. This project is not marked as umbrella because we do not capture any loan projects in Liberia prior to 2005, so there is no risk of double-counting.