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Overview

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

Commitments (Constant USD, 2023)$116,283,441
Commitment Year•2002Country of Activity•YemenDirect Recipient Country of Incorporation•YemenSector•Action Relating To DebtFlow Type•Debt forgiveness

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 6, 2002

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

  • China Ministry of Commerce

Receiving agencies

Government Agencies

  • Government of Yemen

Loan description

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

Narrative

Full Description

Project narrative

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.

Staff comments

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.