Chinese Government cancels RMB 86 million of the Government of Zambia's outstanding debt obligations

📋 Staff Comments

A 2007 Economic Report published by the Government of Zambia indicates that “the stock of debt owed to the bilateral creditors reduced by 27.3 percent to US $287.0 million due to debt cancellations by China.” This implies a substantially greater value of debt forgiveness from the Chinese Government. However, AidData has not identified any corroborating sources that confirm a higher level of debt forgiveness. One possible explanation is that the Chinese Government did follow through on the debt forgiveness pledge that it made in 2006 (see project #2272).China made a concerted effort in 2007 to forgive the debt from interest-free loans maturing by the end of 2005 to heavily-indebted African countries (http://kp.china-embassy.org/chn//zgxw/zgzxxw/t293317.htm). Since interest-free loans usually have 20-year maturities (http://www.gov.cn/zwgk/2011-04/21/content_1850553.htm), we have assumed the loans included in this debt forgiveness package would have been contracted before 2000. As such, this project is not marked as umbrella, as there is little risk of double counting.

📚 Sources & References

• China cancels Zambia's debts, http://www.xaviermissionaries.org/M_Life/NewsArchive/AsiaNews/Chi_Sud_OilNeeds2.htm
• Debt Relief with Chinese Characteristics
• SAIS-CARI China's Debt Cancellation In Africa Database
• Zambia Economic Report 2006
• Zambia wins Chinese investment, opposition snubbed
• China-Zambia joint communique highlights closer economic ties
• China announces package of measures to boost ties with Zambia
• China
• Zambia vow to strengthen cooperation
• 赞比亚共和国
• China's Foreign Aid
• 赞比亚
• Zambian leader 'totally satisfied' with China's generosity
• Zambia Economic Report 2007
• The developmental implications of Sino‑African economic and political relations A preliminary assessment for the case of Zambia 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.