Chinese Government forgives RMB 49.2 million of Lao Government’s outstanding obligations

Project narrative

On June 12, 2003, Chinese Government and the Government of Laos signed a partial debt exemption agreement (《中国政府免除截至2004年底老挝政府对华到期无息贷款债务议定书》). Under the terms of this agreement, the Chinese Government agreed to cancel the Government of Laos’ outstanding debt obligations related to 3 interest-free loans. The Government of Laos contracted these loans between 1974 and 1997 and all of the loans had reached their repayment periods by December 2001. The value of the Lao Government’s outstanding debt obligations was RMB 49.2 million. The exempted repayment obligations were related to the amounts drawn down under (1) an interest-free loan worth RMB 50 million that was contracted on October 3, 1974; (2) an interest-free loan worth RMB 45 million that was contracted on March 18, 1976; (3) an interest-free loan worth RMB 4 million that was contracted on October 28, 1977. The full text of the loan that was contracted on March 18, 1976 can be accessed at https://www.dropbox.com/s/pmfktau027zv7ad/1531876509781.pdf?dl=0