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China-Africa relations
ChinaDiplomacy

Chinese bank signs debt suspension deals with 11 African countries

  • Beijing says it will also waive interest-free loans due to mature by the end of 2020 for 15 African countries
  • China has pushed for World Bank inclusion in DSSI but is meeting resistance from other World Bank/IMF members

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The Exim Bank of China has signed debt suspension agreements with 11 African countries. Photo: Imaginechina
Jevans Nyabiage
Exim Bank of China has signed debt suspension agreements with 11 African countries as Beijing committed to fully taking part in the Group of 20 Debt Service Suspension Initiative (DSSI).
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China’s foreign ministry said other non-official creditors had also reached consensus on debt relief with some African countries regarding the DSSI.

The Group of 20 wealthy nations, including Japan, the United States and Britain, have accused China of not fully taking part in the DSSI, and therefore failing to help African countries cut their debt burden.

However, China was “actively responding to African concerns in accordance with the consensus reached by Chinese and African leaders and the G20 DSSI”, foreign ministry spokesman Zhao Lijian said on Monday.

Zhao said China would also waive interest-free loans due to mature by the end of 2020 for 15 African countries and would continue to push the international community, especially the G20, to further extend the duration of debt suspension.

China did not reveal which countries had benefited from Beijing’s debt relief or whose interest-free loans had been waived. But several countries, such as Zambia, Angola, Ethiopia, the Republic of Congo (Brazzaville), Djibouti, Mozambique and Kenya, are reportedly negotiating to have their Chinese loans restructured.

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