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Overview

Chinese Government cancels KMF 630 million of the Government of Comoros’ outstanding obligations

Commitments (Constant USD, 2023)$1,536,428
Commitment Year•2017Country of Activity•ComorosDirect Recipient Country of Incorporation•ComorosSector•Action Relating To DebtFlow Type•Debt forgiveness

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 19, 2017
Start (actual)
Jan 19, 2017
End (actual)
Jan 19, 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 Comoros

Loan desecription

Chinese Government cancels KMF 630 million of the Government of Comoros’ outstanding obligations

Narrative

Full Description

Project narrative

On January 19, 2017, the Minister of Foreign Affairs of Comoros and the Ambassador of the People's Republic of China in the Union of the Comoros signed a partial debt exemption protocol agreement. Under the terms of this agreement, the Chinese Government reportedly cancelled 630 million Comorian francs (KMF) of the Government of Comoros’ outstanding debt obligations. The debt exemption arrangement was part of a Chinese Government initiative to boost economic growth in Comoros and lighten it debt burden to catalyze future projects like the rehabilitation of The People's Palace of Comoros.

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 almost certainly 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).