China cancels debt

The People’s Republic of China (PRC) has cancelled a debt of US $3 million owed by Eritrea, Shaebia, the web site of the Eritrean ruling party, the People’s Front for Democracy and Justice (PFDJ), reported on 15 June. Eritrea had borrowed the money as a soft loan in 1994 to buy Chinese agricultural machinery. China had now provided Eritrea with a grant of US $3 million, said Shaebia. The Chinese vice-minister for foreign trade and economic cooperation, Zhou Keren, who was on a three-day visit to Eritrea, was expected to sign the agreement for the PRC, while Economic Adviser Dr Woldai Futur, would sign for Eritrea, said Shaebia.

China is a major development partner of Eritrea. It had already financed a number of development projects, including a 200-bed hospital in Asmara, which was under construction, said Shaebia.