Chinese Government pledges $130 million grant to Government of Costa Rica

On June 1, 2007, the Chinese Government promised to donate $130 million of grant funding to the Government of Costa Rica. This aid was to be used for various purposes, and it was expected to include material goods, such as police vehicles and equipment. This memorandum also included a scholarship for 20 Costa Rican students a year to study in China. This memorandum was co-signed by China's then-foreign minister Yang Jiechi. This aid was promised alongside a $300 million purchase of Costa Rican bonds. These bonds, according to the leaked agreement documents, were to be purchased in two payments: China's State Administration of Foreign Exchange would purchase $150 million of the bonds at 2% interest with a term of 12 years, and purchase the remaining $150 million in January 2009.

Additional details

1. This donation and the associated purchases of bonds is thought to have been an attempt to push Costa Rica away from Taiwan/the Republic of China and rescind its recognition of the Taipei government. The memorandum was originally not available to the public but was leaked by the the Costa Rican news organization La Nación, leading to the constitutional court of Costa Rica forcing the government to release the terms of the agreement to the public.

Number of official sources

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Number of total sources

6