Overview

Chinese Government cancels RMB 20 million of Government of Sierra Leone’s outstanding debt obligations

Commitments (Constant USD, 2023)$3,282,801

Commitment Year•2016Country of Activity•Sierra LeoneDirect Recipient Country of Incorporation•Sierra LeoneSector•Action Relating To DebtFlow Type•Debt forgiveness

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Dec 1, 2016

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 Sierra Leone

Loan description

Chinese Government cancels RMB 20 million of Government of Sierra Leone’s outstanding debt obligations

Narrative

Full Description

Project narrative

In December 2016, during his visit to China, Sierra Leone's Minister of Finance and Economic Development, Momodu Kargbom signed a debt exemption agreement with the Chinese Government. China’s Ministry of Commerce reportedly cancelled an outstanding debt obligation worth RMB 20 million, which resulted from an interest-free loan that the Government of Sierra Leone had previously contracted.

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 2016, 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).