Chinese Government cancels R40 million of the Government of Lesotho’s outstanding obligations

In December 2001, the Chinese Government cancelled R40 million of the Government of Lesotho’s outstanding debt obligations. The obligations resulted from interest-free loans that the Government of Lesotho previously contracted for the Lesotho National Convention Center Construction Project. These loans had reached their maturity dates by the end of 1999. The Lesotho National Convention Center Construction Project commenced in April 1996 and concluded in April 1999. It was officially handed over to the Government of Lesotho on April 9, 1999. It cost $20 million and was reportedly paid for in part with interest-free loans from the Chinese Government and funding from the Government of Lesotho. The Center has two auditoriums, four meeting rooms, a lobby, an exhibition room and a coffee bar.

Additional details

This debt forgiveness project is not marked as umbrella since the contracted loan was prior to 2000, so there is no risk of double counting.

Number of official sources

7

Number of unofficial sources

4