Active Development AidData Chinese Aid

CDB suspends debt service payments from Government of Myanmar between January and June 2021 (Linked to Record ID#98030)

Funder	China Development Bank (CDB)
Recipient Organization	Government of Myanmar (Burma)
Country	Myanmar
Start Date	Jan 01, 2021
End Date	Jan 28, 2031
Duration	3,679 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`98031`

Grant Description

In response to the COVID-19 pandemic and the G20 Finance Ministers and Central Bank Governors meeting that took place on April 15, 2020 and on November 13, 2020, the Chinese Government agreed to work with other G20 members to implement the Debt Service Suspension Initiative (DSSI). Then, in 2021, China Development Bank and the Government of Myanmar signed a debt suspension agreement.

Under the terms of the agreement, the lender agreed to suspend principal and interest payments due in 2021 under 5 loan agreements.

The total suspension amount is $47,893,367.10 (including $30,302,268.20 in principal payments and $17,591,098.90 in interest payments).

📋 Staff Comments

The debt suspension agreement with CDB is documented in the Government of Myanmar’s Annual Government Debt Reports, which can be accessed via https://treasury.gov.mm/mm/Annual%20Report/5?language=eng and https://www.dropbox.com/s/l4y62ftatlyf5ik/2020-2021%20Fiscal%20Year%2C%20Annual%20Government%20Debt%20Report.pdf?dl=0 and https://www.dropbox.com/s/gw4ansfleditxkn/2019-2020%20Fiscal%20Year%2C%20Annual%20Government%20Debt%20Report.pdf?dl=0 and https://www.dropbox.com/s/9jxog87dmzfsfgw/Government%20Debt%20Report%20for%20FY%2019-20%20V%20Final%20%2821-12-2021%29.pdf?dl=0.
The Government of Myanmar disclosed the 2021 total suspension amount (including rescheduled principal payments and rescheduled interest payments) to the World Bank through the Debtor Reporting System (DRS). See https://www.dropbox.com/scl/fi/shqo5w418nwvocuiibhn8/IDS-Principal-and-Interest-Amounts-Rescheduled-14-July-2024.xlsx?rlkey=6mka34nyg2qpwd7lvgfxz6x87&dl=03. It is unclear which five loans benefited from this debt rescheduling event, and there is no evidence that demonstrates a specific loan was excluded from the rescheduling. As a result, because there are nine CDB loan projects for Myanmar, AidData assumes all nine projects benefited from this treatment. This issue warrants more investigation.

📚 Sources & References

2020-2021 Fiscal Year
Annual Government Debt Report, 2019-2020 Fiscal Year
Annual Government Debt Report
Government Debt Report for FY 19-20 V Final (21-12-2021)
China’s External Debt Renegotiations After Zambia
IDS Principal and Interest Amounts Rescheduled 14 July 2024 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 Myanmar (Burma)

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