Completed Development AidData Chinese Aid

Chinese Government cancels $17.12 million of the Government of Equatorial Guinea’s outstanding obligations

$17.12M USD

Funder	China Ministry of Commerce
Recipient Organization	Government of Equatorial Guinea
Country	Equatorial Guinea
Start Date	Jan 01, 2006
End Date	May 09, 2027
Duration	7,798 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`427`

Grant Description

In 2006, Li Zhaoxing, China’s Foreign Minister, traveled to Africa, visiting Chad, Benin, Mozambique, the Central African Republic, Equatorial Guinea and Eritrea. During this trip, he signed a debt cancellation agreement with the Government of Equatorial Guinea. Neither party disclosed the amount of debt that was forgiven.

However, the IMF reported that the agreement forgave debts resulting from previously contracted interest-free loans (with maturity dates on or before December 31, 2005), reducing the Government of Equatorial Guinea’s outstanding debt obligations to the Chinese Government by approximately 50%.

The IMF also recorded a reduction in the Government of Equatorial Guinea’s outstanding debt obligations to the Chinese Government — from $33 million in 2005 to $15.88 million in 2006. Therefore, AidData estimates the value of the debts that were forgiven as $17.12 million.

📋 Staff Comments

The debts that were written off through this agreement were almost certainly contracted before 2000, so AidData has not coded this project as an “umbrella project” (as there is little risk of double-counting loans that were contracted from 2000 onward).

📚 Sources & References

Chinese FM continues Africa tour with stop in Equatorial Guinea
Debt Relief with Chinese Characteristics, 1月4日外交部发言人刘建超例行记者会上答记者问
中国势力渗入非洲土壤
Republic of Equatorial Guinea: 2008 Article IV Consultation—Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the Republic of Equatorial Guinea
Republic of Equatorial Guinea: 2006 Article IV Consultation—Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the Republic of Equatorial Guinea
Republic of Equatorial Guinea: 2007 Article IV Consultation—Staff Report; Public Information Notice on the Executive Board Discussion; and Statements by the Executive Director and Authorities of the Republic of Equatorial Guinea
Change in anti-Taipei diplomacy
Equatorial Guinea and China 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.