Overview

Chinese Government cancels $7 million of the Government of Eritrea’s outstanding obligations

Commitments (Constant USD, 2023)$7,635,051

Commitment Year•2016Country 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 1, 2016

Start (actual): Jul 19, 2016

End (actual): Jul 19, 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 Eritrea

Implementing agencies

Government Agencies

Government of Eritrea

Loan description

Chinese Government cancels $7 million of the Government of Eritrea’s outstanding obligations

Narrative

Full Description

Project narrative

In 2016, the Chinese Government cancelled $7 million of the Government of Eritrea’s outstanding debt obligations. The obligations resulted from interest-free loans that the Government of Eritrea previously contracted and that reached maturity by December 31, 2015.

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 2015, 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).