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Overview

Chinese Government cancels RMB 30 million of the Government of Mozambique’s outstanding debt obligations

Commitments (Constant USD, 2023)$4,924,201
Commitment Year•2016Country of Activity•MozambiqueDirect Recipient Country of Incorporation•MozambiqueSector•Action Relating To DebtFlow Type•Debt forgiveness

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 13, 2016

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 Mozambique

Loan description

Chinese Government cancels RMB 30 million of the Government of Mozambique’s outstanding debt obligations

Narrative

Full Description

Project narrative

On June 13, 2016, the Chinese Government agreed to cancel the Government of Mozambique’s outstanding debt obligations by RMB 30 million. These obligations resulted from an interest-free loan that the Government of Mozambique previously contracted with the Chinese Government. The agreement was signed in Maputo by Mozambique's Deputy Minister of Economy and Finance, Maria Isaltina Lucas, and the Chinese Deputy Trade Minister, Zhang Xiangchen.

Staff comments

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 2016, 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).