Chinese Government signs Economic and Technical Cooperation Agreement loaning 65.5 billion ZMK interest-free for unspecified projects in December 2012 (Linked to ETCA #31121)

In December 2012, the Chinese Government and the Government of Zambia signed two Economic and Technical Cooperation Agreements (ETCA). One committed a 65.5 billion ZMK interest-free loan and the other was a 16 billion ZMK grant (ETCA #31121). The proceeds of these agreements were supposed to be spent on poverty eradication and other unspecified projects. The ETCAs were signed between Chinese Ambassador and Hon.Alexander Bwalya Chikwanda, Minister of Finance of the Republic of Zambia during a ceremony in Lusaka.

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

3