Active Development AidData Chinese Aid

China issues package of interest-free loans worth $154.9 million for Mozambique`s agriculture, health and education sectors

¥154.9M RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Mozambique
Country	Mozambique
Start Date	Feb 01, 2007
End Date	May 13, 2033
Duration	9,598 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`1186`

Grant Description

China issues package of interest-free loans worth $154.9 million for Mozambique`s agriculture, health and education sectors In Febrauary 2007 Chinese President Hu Jintao, as part of an 8 nation tour of Africa, held talks with Mozambican President Armando Guebuza and announced a 1.2 billion yuan (154.9 million) package of interest-free loans for the country's agriculture, helath, and education sectors.

The exact nature of this package and the exact projects it was/is being used for remains unkown.

📋 Staff Comments

Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20-years by default and grace period to 10-years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20-years, with a drawdown period of 5-years, grace period of 5-years, and repayment over 10-years. AidData treats the drawdown period as providing 5-years of additional grace.

📚 Sources & References

http://global.factiva.com/redir/default.aspx?P=sa&an=LBA0000020070209e329001ua&cat=a&ep=ASE
Hu Jintao Ends His Official Visit to Mozambique
China to Cancel Debts
Patterns of Chinese investment, aid and trade in Mozambique Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.