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Overview

Chinese Government cancels RMB 600 million of the Government of Bangladesh's outstanding obligations

Commitments (Constant USD, 2023)$105,482,575
Commitment Year•2011Country of Activity•BangladeshDirect Recipient Country of Incorporation•BangladeshSector•Action Relating To DebtFlow Type•Debt forgiveness

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 1, 2011
Start (actual)
Aug 24, 2011
End (actual)
Aug 24, 2011

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

Government Agencies

  • Unspecified Chinese Government Institution

Receiving agencies

Government Agencies

  • Government of Bangladesh

Implementing agencies

Government Agencies

  • Government of Bangladesh

Loan desecription

Chinese Government cancels RMB 600 million of the Government of Bangladesh's outstanding obligations

Narrative

Full Description

Project narrative

In August 2011, the Chinese Government exempted the Government of Bangladesh from repaying the outstanding debts associated with 9 interest-free loans (collectively worth RMB 600 million or approximately $94.92 million) after they entered their planned repayment periods on December 31, 2010. Five of the nine interest-free loans were previously committed via Economic and Technical Cooperation Agreements (ETCAs) and four of these interest-free loans were previously committed via military aid agreements.

Staff comments

1. The loans forgiven through this action were interest-free loans committed through previous ETCAs that were signed by the two governments. As such, the loans likely had maturity lengths of 20 years and since they had reached maturity by 2010, they were almost certainly contracted prior to 2000. Therefore, AidData has not assigned this record to the umbrella category (as there is little to no risk of double counting the monetary value of the debts that were forgiven).