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Overview

Chinese Government cancels RMB 50 million of the Government of Eritrea’s outstanding obligations

Commitments (Constant USD, 2023)$10,922,412
Commitment Year•2007Country of Activity•EritreaDirect Recipient Country of Incorporation•EritreaSector•Action Relating To DebtFlow Type•Debt forgiveness

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 7, 2007
Start (actual)
Jan 7, 2007
End (actual)
Jan 7, 2007

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 Eritrea

Implementing agencies

Government Agencies

  • Government of Eritrea

Loan desecription

Chinese Government cancels RMB 50 million of the Government of Eritrea’s outstanding obligations

Narrative

Full Description

Project narrative

In January 2007, the Chinese Government reportedly cancelled RMB 50 million of the Government of Eritrea’s outstanding debt obligations.

Staff comments

China made a concerted effort in 2007 to forgive the debt from interest-free loans maturing by the end of 2005 to heavily-indebted African countries (http://kp.china-embassy.org/chn//zgxw/zgzxxw/t293317.htm). Since interest-free loans usually have 20 year maturities (http://www.gov.cn/zwgk/2011-04/21/content_1850553.htm), we have assumed the loans included in this debt forgiveness package would have been contracted before 2000. As such, this project is not marked as umbrella, as there is little risk of double counting.