Chinese Government cancels RMB 213 million of the Government of Burundi’s outstanding debt obligations

📋 Staff Comments

1. The IMF and SAIS-CARI record the amount of debt forgiveness that was provided as $13.7 million and $15 million, respectively. However, since the Chinese Government forgave the Government of Burundi’s outstanding debt obligations resulting from interest-free loans that it previously contracted, and interest-free loans from the Chinese Government are almost always denominated in RMB, AidData treats RMB 213 million as the value of the debt that was forgiven.
2. The Chinese Government 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), AidData has assumed the loans included in the debt forgiveness package were contracted before 2000. As such, this record is not coded as an umbrella record, as there is little risk of double counting.

📚 Sources & References

• http://books.google.com/books?id=06cqWiUMWeQC&lpg=PA36&ots=4lP0O2FXf9&dq=burundi%2525252520china%2525252520debt%2525252520relief%25252525202007&pg=PP1#v=onepage&q=PRC&f=false
• Donors pledge $665 mln for Burundi reconstruction, http://search.proquest.com.gate2.library.lse.ac.uk/docview/192450042/13E94BE773A636C977E/4?accountid=9630
• BURUNDI : COMPLETION POINT DOCUMENT UNDER THE ENHANCED HIPC INITIATIVE APPRAISAL REPORT
• 领事馆布隆迪国家概况
• Debt Relief with Chinese Characteristics
• SAIS-CARI China's Debt Cancellation In Africa Database
• Burundi: Seventh Review Under the Three-Year Arrangement Under the Extended Credit Facility
• Heavily Indebted Poor Countries (HIPC) Initiative and Multilateral Debt Relief Initiative (MDRI)
• Burundi: Sixth Review Under the Arrangement Under the Poverty Reduction and Growth Facility and Request for Waiver of Performance Criteria: Staff Report; Staff Supplement; Staff Statement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Burundi
• Burundi: Sixth Review Under the Arrangement Under the Poverty Reduction and Growth Facility and Request for Waiver of Performance Criteria—Staff Report; Staff Supplement; Staff Statement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Burundi
• Donors pledge $665 mln for Burundi reconstruction, http://global.factiva.com/aa/?ref=LBA0000020070525e35p001qs&pp=1&fcpil=en&napc=S&sa_from=
• Burundi—Enhanced Heavily Indebted Poor Countries Initiative— Completion Point Document and Multilateral Debt Relief Initiative
• Burundi: Letter of Intent
• Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding 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.