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Chinese Government provides USD 2.4 million interest-free loan to Nauru via ETCA in 2003
| Funder | China Ministry of Commerce |
|---|---|
| Recipient Organization | Government of Nauru |
| Country | Nauru |
| Start Date | Oct 03, 2003 |
| End Date | Jan 29, 2030 |
| Duration | 9,615 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 37652 |
Grant Description
Chinese Government provides $2.4 million interest-free loan to Nauru via ETCA On October 3, 2003, President Rene Harris announced that it had accepted an interest-free loan worth USD 2.4 million USD from China.
Proceeds from the loan were to help support unspecified economic and technical cooperation projects between the two countries. Disbursement of the loan was confirmed, though the exact timing remains unclear. Nauru severed diplomatic relations with Taiwan in 2002 following millions in pledged aid from China.
However, when pledged assistance failed to materialize, Nauru threatened to reestablish relations with Taiwan, prompting the loan commitment.
Staff Comments
- Economic and Technical Cooperation Agreement (ETCA) from China's Ministry of Commerce typically provide funding in the form of interest free loans or grants for economic and technical projects to sovereign governments. Given that the reported agreement was accepted by the Government of Nauru and involved an interest-free loan for unspecified economic and technical projects, it is likely that the loan commitment was provided through an ETCA.
- As 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
- China Sees Chances for Fun and Profit Offshore
- Nauru strengthens bonds with China by accepting loan of US$2.4 million
- Nauru gets loan of over $2 million US from China
- Unfaithful friends
- Does size matter? Foreign aid in Taiwan's diplomatic strategy, 2000–8 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.
All Grantees
Government of Nauru
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