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Overview

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

Commitments (Constant USD, 2023)$284,648,265
Commitment Year•2001Country of Activity•EthiopiaDirect Recipient Country of Incorporation•EthiopiaSector•Action Relating To DebtFlow Type•Debt forgiveness

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 21, 2001
Start (actual)
Jun 22, 2001
End (actual)
Jun 22, 2001

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 Ethiopia

Implementing agencies

Government Agencies

  • Government of Ethiopia

Loan desecription

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

Narrative

Full Description

Project narrative

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.

Staff comments

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,.