Chinese Government cancels RMB 50 million of the Government of Lesotho’s outstanding obligations
Commitment amount
$ 11827591.718413759
Adjusted commitment amount
$ 11827591.72
Constant 2021 USD
Summary
Funding agency [Type]
China Ministry of Commerce [Government Agency]
Recipient
Lesotho
Sector
Action relating to debt (Code: 600)
Flow type
Debt forgiveness
Infrastructure
No
Category
Project lifecycle
Description
In November 2006, during the Beijing Summit for the Forum on China-Africa Cooperation (FOCAC), Chinese President Hu Jintao pledged to cancel any interest-free loans contracted by heavily indebted poor countries (HIPCs) and 33 less developed countries (LDCs) in Africa (including Lesotho) that were scheduled to begin repayment at the end of 2005. Then, on September 21, 2007, China’s Vice Minister of Commerce and Lesotho’s Minister of Finance signed a debt relief agreement. Under the terms of this agreement, the Chinese Government agreed to cancel RMB 50 million of the Government of Lesotho’s outstanding debt obligations.
Additional details
This project has not been marked as umbrella since the loans that were canceled were almost certainly contracted in the 1990s and there is a minimal risk of double-counting.
Number of official sources
5
Number of total sources
8
Details
Cofinanced
No
Direct receiving agencies [Type]
Government of Lesotho [Government Agency]
Implementing agencies [Type]
Lesotho Ministry of Finance [Government Agency]