Chinese Government provides $2.5 million interest-free loan for critical underfunded areas

On 23 February, 2008, the Chinese Government signed an interest-free loan agreement worth $2.5 million with the Government of Zimbabwe for 'critical areas that need funds' (See: Country, China Sign U.S.$42m Loan Facility). The Chinese Government was represented by Vice Minister of Commerce, Gao Hucheng, at the signing ceremony while the Zimbabwean Government was represented by the Acting Minister of Finance and Minister of Industry and Internatioanl Trade, Obert Mpofu (See: Country, China Sign U.S.$42m Loan Facility). Information on the final disbursement of these funds and the relevant dates of implementation is uncertain.

Additional details

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

4