Completed Development AidData Chinese Aid

Chinese Government cancels $122.5 million of the Government of Ethiopia's outstanding obligations

$122.56M USD

Funder	China Ministry of Commerce
Recipient Organization	Government of Ethiopia
Country	Ethiopia
Start Date	Jun 21, 2001
End Date	Feb 27, 2028
Duration	9,747 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`594`

Grant Description

On June 21, 2001, the Chinese Government cancelled $122.5 million of the Government of Ethiopia's outstanding debts related to 4 interest-free loans: a $105,680,317.04 interest-free loan contracted on October 9, 1971, a $3.36 million interest-free loan contracted on October 25, 1988, a $7.5 million interest-free loan contracted on September 14, 1989, and a 6 million interest-free loan contracted on August 26, 1990.

This was a part of a larger pledge by the Chinese Government to cancel or reduce the debts of highly indebted poor countries.

📋 Staff Comments

The project has not been coded as an umbrella project as there is no risk of duplication with other projects.
There is disagreement among the underlying sources regarding the face value of the Chinese Government loan that the Government of Ethiopia contracted on October 9, 1971. According to Teh-chang Lin (see https://www.dropbox.com/s/23hjy9c1eifa9b7/Lin%20dissertation.pdf?dl=0), it was worth $84 million and it carried the following terms: 20-year maturity, 20-year grace period, and 0% interest rate. According to Wolfgang Bartke (see https://www.dropbox.com/s/hfyu04y2pljstwy/Bartke%201989%20The%20Economic%20Aid%20of%20the%20PR%20China%20to%20Developing%20and%20Socialist%20Countries.pdf?dl=0), it was worth $80 million,.

📚 Sources & References

China Cancels $123 Million Of Ethiopia's Debt
China relieves Ethiopia of R992,61m debt
China cancels Ethiopian debt
ETHIOPIA Enhanced Initiative for Heavily Indebted Poor Countries (HIPC)—Update of Preliminary Document
Decision Point Document for the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative
SAIS-CARI China's Debt Cancellation In Africa Database*
Heavily Indebted Poor Countries (HIPC) Initiative: Status of Implementation
The foreign aid policy of the People’s Republic of China: A theoretical analysis 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.