Chinese Government cancels $50.37 million of the Government of Yemen’s outstanding obligations

On November 6, 2002, the Chinese Government and the Government of Yemen signed a partial debt exemption protocol agreement (中华人民共和国政府和也门共和国政府关于免除也门共和国部分债务的议定书). The agreement reportedly stipulated that the Chinese Government would forgive the Yemeni Government’s outstanding obligations under seven loans that it contracted between the years of 1958 and 1989. Several media sources indicate that the Chinese Government agreed to forgive $84 million in total (out of Yemen’s total outstanding debt to China of $185 million). However, Yemen’s Central Bank reports that $50.37 million was forgiven during 2002. AidData relies upon the value reported by Yemen’s Central Bank.

Additional details

1. One source indicates that the Chinese Government previously agreed in 2001 to exempt the Yemeni Government from repaying RMB 75.9 million of debt (from loans that it contracted between 1958 and 1972). However, it is unclear if these are separate debts from those covered by the November 6, 2002 partial debt exemption protocol agreement. This issue merits further investigation.

Number of official sources

4

Number of total sources

7