China Renounces Interest-Free Loans To Africa Worth 1% Or Less Of Its Credit To The Continent.
In August, the Chinese foreign ministry announced that it had canceled 23 loans to 17 African nations that were due in 2021, but it did not provide any other information.
The waived loans’ total value to be up to $610 million and ranged in maturity from 10 to 30 years.
Chinese state-owned lenders committed to $53. 8 billion of loans to Africa between 2000 and 2012, according to the Boston University database; which tracks loans made since 2000, so the loans cancelled last month accounted for a tiny portion.
They added that the loans are “more akin to foreign policy instruments than bottom line-oriented financial instruments”.