Completed Development AidData Chinese Aid

MOFCOM forgives $1 million of Liberia's outstanding debt obligations (Linked to Record ID#43602)

¥1M RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Liberia
Country	Liberia
Start Date	Jan 01, 2007
End Date	Jul 20, 2029
Duration	8,236 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`1648`

Grant Description

On February 1, 2007, Hu Jintao, Chinese Prime Minister, signed an agreement to forgive $1 million and RMB 80 million of outstanding debt owed by the Government of Liberia to the Chinese Government. These debts were incurred through 3 interest-free loans contracted before December 31, 2005.

According to the IMF, China's cancellation of these loans represented 100 percent of its outstanding claims due before December 31, 2005. Record ID#43602 captures the forgiveness of RMB 80 million of outstanding debt to the Chinese Government. Record ID#1648 captures the forgiveness of the $1 million of outstanding debt to the Chinese Government.

📋 Staff Comments

SAIS-CARI reports that an additional $10 million may have been forgiven in 2006.This project is not marked as umbrella because we do not capture any loan projects in Liberia prior to 2005, so there is no risk of double-counting.

📚 Sources & References

http://intl.ce.cn/zgysj/200702/04/t20070204_10311267.shtml, http://news.bbc.co.uk/2/hi/africa/6319457.stm
UPDATAE 1-China's Hu brings hope, pride to war-torn Liberia
China Cancels Liberia's Debt, http://lr.china-embassy.org/chn/sghdhzxxx/t615922.htm
During President Hu Jintao's visit, the two governments signed 7 economic and trade cooperation agreements
Liberia: Enhanced Initiative for Heavily Indebted Poor Countries—Completion Point Document and Multilateral Debt Relief Initiative
Liberia’s External Debt: Moving Towards Comprehensive Debt Relief, http://global.factiva.com/aa/?ref=LBA0000020070201e321002hb&pp=1&fcpil=en&napc=S&sa_from= 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.