Project ID: 316

Chinese Government cancels RMB 213 million of the Government of Burundi’s outstanding debt obligations

Commitment amount

$ 43725509.51

Constant 2017 USD

Summary

Funding agency [Type]

China Ministry of Commerce [Government Agency]

Recipient

Burundi

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

2007

Completion

2007

2007-05-25

Actual

Description

On May 25, 2007, the Chinese Government and the Government of Burundi signed an agreement on the remission of the Government of Burundi’s outstanding debt obligations to the Chinese Government. This debt forgiveness agreement reportedly eliminated all of the Government of Burundi’s outstanding debt obligations. The debts that were forgiven resulted from interest-free Chinese Government loans that the Government of Burundi previously contracted.

Additional details

The IMF and SAIS-CARI record the amount of debt forgiveness that was provided as $13.7 million and $15 million, respectively. However, since the Chinese Government forgave the Government of Burundi’s outstanding debt obligations resulting from interest-free loans that it previously contracted, and interest-free loans from the Chinese Government are almost always denominated in RMB, AidData treats RMB 213 million as the value of the debt that was forgiven.China made a concerted effort in 2007 to forgive the debt from interest-free loans maturing by the end of 2005 to heavily-indebted African countries (http://kp.china-embassy.org/chn//zgxw/zgzxxw/t293317.htm). Since interest-free loans usually have 20 year maturities (http://www.gov.cn/zwgk/2011-04/21/content_1850553.htm), we have assumed the loans included in this debt forgiveness package would have been contracted before 2000. As such, this project is not marked as umbrella, as there is little risk of double counting.

Number of official sources

7

Number of unofficial sources

8

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Burundi [Government Agency]

Implementing agencies [Type]

Government of Burundi [Government Agency]