Chinese Government forgives $10 million interest-free loan for construction of USP Law School (Linked to Project ID#39295, #37722)

On November 25, 2003, the Chinese Government and the Government of Vanuatu signed a debt rescheduling agreement, which extended the length of the grace period for an interest-free loan that the Government of Vanuatu had contracted in 1995: a $10 million loan for the construction of the University of South Pacific (USP) Law School (see Project ID#39295) that was scheduled to enter its repayment period on November 26, 2003. At the time of the signing of the agreement, Vanuatu’s Minister of Foreign Affairs said, ‘So far, there has never been any loan payments made by the government towards the USP complex. However, the government intends to pay up within this next 5 years.’ Then, in 2013, USP announced that the Chinese Government had cancelled the Government of Vanuatu’s repayment obligations related to the loan that was issued for the construction of the USP Law School. Project ID#37722 captures the 5-year grace period extension and Project ID#73393 captures the cancellation of the Government of Vanuatu’s outstanding repayment obligations.

Additional details

The precise year in which the Chinese Government cancelled the Government of Vanuatu’s repayment obligations is unknown. For the time being, AidData assumes that the commitment year was in 2008 (when the 5 year grace period extension ended).

Number of official sources

3

Number of total sources

5