Project ID: 30252

Chinese Government cancels RMB 100 million of the Government of Togo’s outstanding debt obligations

Commitment amount

$ 16144628.16

Constant 2017 USD

Summary

Funding agency [Type]

China Ministry of Commerce [Government Agency]

Recipient

Togo

Sector

Action relating to debt (Code: 600)

Flow type

Debt forgiveness

Concessional

Yes

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

ODA-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2012

Description

On October 13, 2011, the Chinese Government pledged to forgive RMB 100,000,000 (CFA 8.2 billion francs) of the Government of Togo’s outstanding debt obligations (see 'En visite d'Etat en Chine Faure Gnassingbé rencontre la communauté togolaise'). The formal agreement for the debt cancellation (Chinese name:《中多政府关于免除多哥政府部分到期债务的协议》) was signed on May 24, 2012 by the Government of China and the Ministry of Economy and Finance of the Togolese Republic (see '王作峰大使与多哥经济与财政部长阿亚索尔签署《中多政府关于免除多哥政府部分到期债务的协议》').The debts cancelled came from two interest-free loans previously contracted by the Government of Togo: a RMB 50 million loan contracted on December 20, 1996, and a RMB 50 million loan contracted on October 11, 1997. Both of these loans matured on or before December 31, 2009 (see 'En visite d'Etat en Chine Faure Gnassingbé rencontre la communauté togolaise'). It was expected that the cancellation of debts would help Togo achieve its Millennium Development Goals (see '中国免除多哥部分到期债务 助其实现发展目标').

Additional details

AidData has assumed based on numerous reports in English, French, and Chinese that indicate that the debt was formally cancelled in May 2012 that the agreement signed in October 2011 was a pledge of some kind, such as a memorandum of understanding, to cancel debt, and not the formal cancellation agreement. One source suggests the value of the debts that were forgiven was actually RMB 99,913,900 rather than RMB 100,000,000. This debt forgiveness project is not marked as an umbrella project since the original loans were contracted before 2000, so there is no risk of double counting.

Number of official sources

5

Number of unofficial sources

10

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Togo [Government Agency]

Implementing agencies [Type]

Togo Ministry of Economy and Finance [Government Agency]