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Overview

Chinese Government cancels RMB 37,816,400 of the Government of Seychelles' outstanding debt obligations

Commitments (Constant USD, 2023)$5,753,757
Commitment Year•2018Country of Activity•SeychellesDirect Recipient Country of Incorporation•SeychellesSector•Action Relating To DebtFlow Type•Debt forgiveness

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 14, 2018
Start (actual)
Aug 14, 2018
End (actual)
Aug 14, 2018

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 Seychelles

Loan desecription

Chinese Government cancels RMB 37,816,400 of the Government of Seychelles' outstanding debt obligations

Narrative

Full Description

Project narrative

On August 14, 2018, the Chinese Government and the Government of Seychelles signed a protocol on partial debt relief in which the Chinese Government canceled RMB 37,816,400 ($5.5 million) of the Government of Seychelles' outstanding debt obligations. These repayment obligations resulted from interest-free loans that the Government of Seychelles previously contracted with the Chinese Government under one or more Economic and Technical Cooperation Agreement (ETCAs). The stated purpose of the debt relief was to support the Seychellois economy and reduce the government’s debt burden.

Staff comments

Seychelles is not ODA-eligible from 2018 onwards. The loans forgiven through this action were 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 2018, they were almost certainly contracted prior to 2000. Additionally, AidData has not discovered any interest-free loans provided by the Chinese Government in the Seychelles before 2018 that could have been forgiven by this project. Therefore, AidData has not assigned this record to the umbrella category (as there is no risk of double counting the monetary value of the debts that were forgiven).