Overview

Chinese Government cancels 5.5 billion CAF of the Government of CAR’s outstanding debt obligations

Commitments (Constant USD, 2023)$19,067,991

Commitment Year•2007Country of Activity•Central African RepublicDirect Recipient Country of Incorporation•Central African RepublicSector•Action Relating To DebtFlow Type•Debt forgiveness

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 5, 2007

Start (actual): Jan 5, 2007

End (actual): Jan 5, 2007

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 the Central African Republic

Loan description

Chinese Government cancels 5.5 billion CAF of the Government of CAR’s outstanding debt obligations

Narrative

Full Description

Project narrative

On January 5, 2007, the Chinese Government and the Government of Central African Republic (CAR) signed an agreement, which cancelled 5.5 billion CAF (approximately $11 million) of the Government of CAR’s outstanding debt obligations. President of the Central African Republic (CAR) Francois Bozize and Chinese Foreign Minister Li Zhaoxing both signed the agreement. These debt obligations resulted from two previously contracted loans that had reached their maturity dates by the end of December 2005. This debt cancellation reportedly represents 29% of the nominal value of the Central African Republic’s outstanding debt obligations to China.

Staff comments

1. This loan forgiveness project is not marked as umbrella because any loans captured elsewhere in the dataset would be unlikely to have matured by 2005, so there is little risk of double counting.