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Overview

Chinese Government cancels RMB 239.26 million of the Government of Mozambique’s outstanding debt obligations

Commitments (Constant USD, 2023)$38,485,620
Commitment Year•2017Country of Activity•MozambiqueDirect Recipient Country of Incorporation•MozambiqueSector•Action Relating To DebtFlow Type•Debt forgiveness

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 26, 2017
Start (actual)
Oct 26, 2017
End (actual)
Oct 26, 2017

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 239.26 million of the Government of Mozambique’s outstanding debt obligations

Narrative

Full Description

Project narrative

On October 26, 2017, Mozambique's Deputy Minister of Foreign Affairs and Cooperation, Nyeleti Mondlane, and the Chinese Ambassador to Mozambique, Su Jian signed an agreement on the partial cancellation of the Government of Mozambique outstanding debt obligations to the Chinese Government. The Chinese Government reportedly cancelled the Government of Mozambique’s outstanding debt obligations by RMB 239.26 million (or approximately $36,166,400). These obligations resulted from four interest-free loans that the Government of Mozambique previously contracted with the Chinese Government.

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 2017, they were likely 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)."