Chinese Government cancels $122.5 million of the Government of Ethiopia's outstanding obligations

On June 21, 2001, the Chinese Government cancelled $122.5 million of the Government of Ethiopia's outstanding debts related to 4 interest-free loans: a $105,680,317.04 interest-free loan contracted on October 9, 1971, a $3.36 million interest-free loan contracted on October 25, 1988, a $7.5 million interest-free loan contracted on September 14, 1989, and a 6 million interest-free loan contracted on August 26, 1990. This was a part of a larger pledge by the Chinese Government to cancel or reduce the debts of highly indebted poor countries.

Additional details

1. The project has not been coded as an umbrella project as there is no risk of duplication with other projects. 2. There is disagreement among the underlying sources regarding the face value of the Chinese Government loan that the Government of Ethiopia contracted on October 9, 1971. According to Teh-chang Lin (see https://www.dropbox.com/s/23hjy9c1eifa9b7/Lin%20dissertation.pdf?dl=0), it was worth $84 million and it carried the following terms: 20 year maturity, 20 year grace period, and 0% interest rate. According to Wolfgang Bartke (see https://www.dropbox.com/s/hfyu04y2pljstwy/Bartke%201989%20The%20Economic%20Aid%20of%20the%20PR%20China%20to%20Developing%20and%20Socialist%20Countries.pdf?dl=0), it was worth $80 million,.

Number of official sources

3

Number of total sources

8