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Chinese Government provides a RMB 20 million grant - via a 2005 ETCA - to help Georgia meet its outstanding debt obligations to China
| Funder | China Ministry of Commerce |
|---|---|
| Recipient Organization | Georgian Ministry of Finance |
| Country | Georgia |
| Start Date | Dec 20, 2005 |
| End Date | Nov 12, 2032 |
| Duration | 9,824 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 42256 |
Grant Description
On December 20, 2005, the Chinese Government provided a RMB 20 million grant — through an Economic and Technical Cooperation Agreement (ETCA) — to the Georgian Government it meet its loan repayment obligations under a 1997 loan agreement with the Chinese Government.
The RMB 20 million grant from December 20, 2005 was used by the Government of Georgia to repay approximately $2.6 million USD of its outstanding debt obligations to China under this 1997 loan agreement.
The Government of Georgia also agreed to repay an additional $400,000 USD to the Chinese Government with its own budgetary resources.
The use of remaining proceeds was under debate in 2006, but one possibility was that it would be used to support a fruit juice processing plant.
On April 11, 2006, President of China Hu Jintao and President of Georgia Mikheil Saakashvili, during the latter's official visit to China (a first for a Georgian president) announced that a debt forgiveness deal had been reached and it would soon go into effect.
According to August 2018 email correspondence between Georgia’s Ministry of Finance and AidData, this project reached completion status on October 1, 2006.
Staff Comments
This project is known as the 12.12.1997 Credit Support Project.It is unclear why debt forgiveness was signed in December 2005 but only announced in April 2006; they do not appear to be separate projects, because debt forgiveness signed in December 2005 was the only debt forgiveness involving China noted in Georgian government documents reviewed by AidData.No source explicitly names the Chinese Ministry of Commerce as the source of financing, but since this is an ETCA AidData has assumed it was and coded accordingly.This project is not marked as umbrella since the grant went towards a loan contracted prior to 2000, so there is no risk of double counting.
Sources & References
- Chinese
- Georgian presidents agree on grant, debt relief
- China and Georgia update cooperation
- China Forgives Georgia's $3 Million Debt, ინფოგრაფიკების ფილტრები, 6 November 2019 Flat Export of China Records from the Electronic Aid Information Management System of Republic of Georgia
- Chinese Government Grants to the Government of Georgia
- Request for List of Loans from Chinese Government Institutions to Georgia 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
Georgian Ministry of Finance
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