Completed Development AidData Chinese Aid

Chinese Government cancels CFA 20.7 billion of the Government of Cameroon’s outstanding debt obligations

$34.5M USD

Funder	China Ministry of Commerce
Recipient Organization	Government of Cameroon
Country	Cameroon
Start Date	Jan 18, 2019
End Date	Jan 20, 2032
Duration	4,750 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`59059`

Grant Description

On January 18, 2019, Director of the Office of the Central Foreign Affairs Working Committee of China, Yang Jiechi met with Cameroon President Paul Biya and signed a debt cancellation (免债议定书) agreement.

This agreement came in the wake of multiple rounds of negotiation between the Chinese Government and the Government of Cameroon between November 2017 and January 2019. The Government of Cameroon asked the Chinese Government cancel outstanding debt obligations worth CFA 38 million.

However, under the terms of the final agreement, the Chinese Government cancelled CFA 20.7 billion of the Government of Cameroon’s outstanding debt obligations.

These obligations resulted from interest free-loans that the PRC Government issued to the Government of Cameroon between 2000 and 2007. At least some of these loans were reportedly set to mature in 2018.

📋 Staff Comments

SAIS CARI identifies the value of the forgiven debts as $78 million. This estimate is considerably higher than the monetary value reported by Government of Cameroon itself (see https://www.dropbox.com/s/xz2zs5m1tdvtztp/Rapport_Activites_2019.pdf?dl=0).
The debts that were forgiven resulted from interest-free loans that the Chinese Government issued to the Government of Cameroon between 2000 and 2007. As such, to avoid double-counting, AidData has classified this record as an 'umbrella record' which exempts its transaction amount from aggregates.

📚 Sources & References

China just quietly wrote off a chunk of Cameroon's debt. Why the secrecy?
中国同意免除部分喀对华政府间无息贷款债务
China writes off nearly $78 million of Cameroon’s debt
王毅：中喀合作不存在所谓“债务陷阱”
China forgives Cameroon $78m out of $5.7bn total debt
Cameroon seeks debt restructuring with China
IMF Country Report No. 19/247
China just quietly wrote off a chunk of Cameroon's debt. Why the secrecy?
Opinion: Fake news fails in damaging Sino-African ties
Debt Relief with Chinese Characteristics
Protocol of the Government of the People’s Republic of China and the Government of the Republic of Burundi on the Cancellation of Certain Debts of the Government of the Republic of Burundi
SAIS-CARI China's Debt Cancellation In Africa Database*
IMF STAFF COUNTRY REPORTS
CAMEROON
Donations, cancelations, and deferment: China is taking measures to lighten the burden of its debt on Cameroon but…
La Chine consent l'annulation de la dette partielle liée aux prêts intergouvernementaux sans intérêt du Cameroun envers la Chine
Rapport Annuel 2019 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 Cameroon

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