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

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.

Additional details

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).

Number of official sources

4

Number of total sources

6