Completed Development AidData Chinese Aid

Chinese Government cancels $32 million of Rwanda's outstanding debt obligations

$32M USD

Funder	China Ministry of Commerce
Recipient Organization	Government of Rwanda
Country	Rwanda
Start Date	May 19, 2007
End Date	May 14, 2028
Duration	7,666 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`1899`

Grant Description

During a five day visit to China on May 14-19, 2007, Rwandan President Paul Kagame and Chinese President Hu Jintao signed an agreement canceling all of the Government of Rwanda's outstanding debt obligations 'through 2005'. According to the IMF, these obligations were worth $32 million. The US Embassy in Kigali has corroborated the deal.

📋 Staff Comments

The debts that were cancelled almost certainly refer to interest-free loans that were contracted on or before 2005. This record is not coded as an umbrella project because AidData does not capture any Chinese Government loan-financed projects in Rwanda prior to 2009, so there is little to no risk of double-counting. SAIS-CARI’s dataset of China’s debt relief from 2000 to 2019 does not identify the monetary value of this act of debt forgiveness. AidData relies on IMF Country Report No. 09/58 for its estimate of the monetary value of the outstanding debts that were cancelled. Some sources suggest that the Chinese Government cancelled $160 million of outstanding debt obligations. However, this appears to be a reporting error, which may be attributable to confusion over the currency of denomination (RMB or USD).

📚 Sources & References

http://www.scoop.co.nz/stories/WL0706/S00710.htm
China Promises More Aid
Debt Cancellation, https://github.com/alx/cablegate/blob/master/origin/Embassy%20Kigali/07KIGALI529.txt, http://global.factiva.com/aa/?ref=AFNWS00020070522e35m000p7&pp=1&fcpil=en&napc=S&sa_from=
China - Rwanda ties: a friend in need is a friend indeed
Rwanda : 2008 Article IV Consultation
Fifth Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, and Request for Waiver of Nonobservance of Performance Criterion: Staff Report; Staff Supplement and Statement; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Rwanda
Millennium Development Goals Country Report 2007
SAIS-CARI China's Debt Cancellation In Africa Database*
温家宝会见卢旺达总统
Debt Relief with Chinese Characteristics 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.