Chinese Government cancels RMB 50 million of the Government of Eritrea’s outstanding obligations

¥50M RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Eritrea
Country	Eritrea
Start Date	Jan 07, 2007
End Date	Jul 05, 2033
Duration	9,676 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`73367`

Grant Description

In January 2007, the Chinese Government reportedly cancelled RMB 50 million of the Government of Eritrea’s outstanding debt obligations.

📋 Staff Comments

China made a concerted effort in 2007 to forgive the debt from interest-free loans maturing by the end of 2005 to heavily-indebted African countries (http://kp.china-embassy.org/chn//zgxw/zgzxxw/t293317.htm). Since interest-free loans usually have 20-year maturities (http://www.gov.cn/zwgk/2011-04/21/content_1850553.htm), we have assumed the loans included in this debt forgiveness package would have been contracted before 2000. As such, this project is not marked as umbrella, as there is little risk of double counting.

📚 Sources & References

China Signs Economic Deals with Eritrea
Debt Relief with Chinese Characteristics
SAIS-CARI China's Debt Cancellation In Africa Database
Chinese exports to Eritrea rise to $37.7 million in 2006 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.