Chinese Government provides $3.4 million interest free loan for textile factory in Awassa

In 2001, the China's ambassador to Ethiopia, Ai Ping, announced that the Chinese government had supplied an interest-free loan of 3.4 million USD to a textile factory in Awassa, the capital of the Southern National Nationalities Peoples' state, in support of its production expansion program. Ethiopia's Awassa Textile Share Company is one of the largest textile mills in the country. The Awassa Textile factory is located in Awassa, the capital of the Southern National Nationalities Peoples' state.

Additional details

Some sources indicate that two different interest-free loans were provided in 2001: a $2.4 million loan and a $1 million loan. Also, as the Awassa Textile factory still operates today, this project has been status-coded as complete. Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20 years by default and grace period to 10 years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace.

Number of official sources

1

Number of total sources

7