China Provides 200 Million Birr Interest-Free Loan for Development Projects through ETCA (linked to #30238, #60179)

In September of 2012, the Chinese government gave a 256 million ETB monetary grant (project #30238) and a soft loan totaling 23 million USD to Ethiopia. The loan provided for 200 million ETB in the form of an interest-free loan. The money is for the support of development activities within the country, but it is unclear as to which projects will be financed. This financing is part of an Economic and Technical Cooperation Agreement (ETCA) (project #60179). The agreement was officially signed on October 29, 2012, by State Minister of Finance and Economic Affairs, Ahmed Shide, and Charge d'Affairs at the Chinese Embassy, Wei Hontian.

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