Overview

Chinese Government cancels RMB 50 million of the Government of Lesotho’s outstanding obligations

Commitments (Constant USD, 2023)$10,922,412

Commitment Year•2007Country of Activity•LesothoDirect Recipient Country of Incorporation•LesothoSector•Action Relating To DebtFlow Type•Debt forgiveness

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2007

Start (actual): Sep 21, 2007

End (actual): Sep 21, 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 Lesotho

Implementing agencies

Government Agencies

Lesotho Ministry of Finance

Loan desecription

Chinese Government cancels RMB 50 million of the Government of Lesotho’s outstanding obligations

Narrative

Full Description

Project narrative

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.

Staff comments

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.