Chinese Government forgives interest-free debt obligations of Government of Bangladesh due in 2008

Between 28 and 29 July 2009 during the 12th Joint Commission (JC) between Bangladesh and China in Beijing, the Chinese Government agreed to write off unpaid interest on loans given to Bangladesh through the end of 2008. The value of this debt relief is unknown. Then, during a state visit to China from March 17-21, 2010, Chinese and Bangladeshi government officials signed four documents. One of them was 'the Protocol on Remitting the Bangladesh Interest-free Loan due in 2008'. The Bangladeshi side reportedly requested a 'waiver of a $800 million loan from China' but it is unclear if that is the actual amount of debt that was forgiven.

Additional details

1. This debt relief project is separate from project #34159 which captures debt rescheduling. 2. The loans forgiven through this action were almost certainly interest-free loans committed through previous ETCAs. As such, the loans likely had maturity lengths of 20 years and since they had reached maturity no later than 2008, they were almost certainly contracted prior to 2000. Therefore, AidData has not assigned this record to the umbrella category (as there is little risk of double counting the monetary value of the debts that were forgiven).

Number of official sources

0

Number of total sources

6