Project ID: 594

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

Commitment amount

$ 267494788.9

Constant 2017 USD

Summary

Funding agency [Type]

China Ministry of Commerce [Government Agency]

Recipient

Ethiopia

Sector

Action relating to debt (Code: 600)

Flow type

Debt forgiveness

Concessional

Yes

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

ODA-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2001

Completion

2001

2001-06-22

Actual

Description

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 unofficial sources

5

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Ethiopia [Government Agency]

Implementing agencies [Type]

Government of Ethiopia [Government Agency]

Gurarantee provided

No

Insurance provided

No