Chinese Government forgives the Maldives of its outstanding debt obligations under a RMB 5 million interest-free loan (Linked to Record ID#69506)

Project narrative

On February 13, 2003, the Chinese Government and the Government of Maldives signed the Protocol of the Government of the People's Republic of China and the Government of the Republic of Maldives on the Waiver of Partial Debt of the Government of the Republic of Maldives (in Chinese "中华人民共和国政府和马尔代夫共和国政府关于免除马尔代夫共和国政府部分债务的议定书"). China agreed to forgive the Maldives of its outstanding debt obligations under an RMB 2.5 million interest-free loan contracted on August 28, 1981 (converted into USD 469,734.09 at the average exchange rate between RMB and USD when the repayment period is first entered) and an RMB 5 million interest-free loan contracted on February 20, 1990 (converted into RMB 603,981.45 at the average annual exchange rate between RMB and USD when the repayment period was first entered). Each of the loans were part of an Economic and Technical Cooperation Agreement (ETCA) and had entered repayment period in December 2001. China canceled the loans in order to support the development of the Maldivian economy and reduce the Maldives' debt burden. For record-keeping purposes, this project only captures the debt forgiveness of the 1990 RMB 5 million loan. For the debt forgiveness of the 1981 RMB 2.5 million loan, see linked Record ID#69506.