China is reported to have introduced a new initiative through which highly indebted African countries will benefit partial cancelling of Loans including Cameroon.
Seventeen countries have already been shortlisted , reveals a communique from Beijing.The communique further specifies that these 17 countries were owing China 23 interest free loans that were due for repayment in 2021.One of the greatest economic giants in the world also specified it has canceled interest-free loan debts that were due to mature way back to the end of 2020 for 15 African countries and promised to exempt African least developed countries’ debt incurred from interest-free loans.
The Guardian post newspaper reports that cancellations announced in favor of Cameroon,Botswana, Burundi,Rwanda, DRC,ROC and Mozambique total at least 113.8 million US Dollars. Two official Chinese bilateral creditors have also suspended over 1.3 billion USD in debt service in 23 countries worldwide under the G20 DSSI, including 16 African countries,according to Chinese officials.
” China appreciates the firm commitment of African countries to the one chine principle and strong support for China’s effort to safeguard sovereignty,security and territorial integrity,” a Chinese Leader said. Angola also received an Unknown amount of DSSI debt relief from China Eximbank. Meanwhile China say only four countries have officially released information on their G20 debt service suspensions from Chinese Lenders; the Maldives 25MUSD, Tajikistan 40MUSD, Zambia 110 MUSD, and Kenya 378 MUSD.
Journal du Cameroon notes there are other forms of investments in Africa, through which China intends recovering it’s debts , Infrastructure and humanitarian investments funded by China are all groomed to boost Hong Kong’s economy while recovering completely from the amount of money borrowed to various nations. China has executed major projects in Africa and continue to tune more projects all round Africa.
Cameroon appears amongst the countries who have borrowed the most from China in terms of dollars. This mutation is applauded by some African Leaders though others remain skeptical to the sudden decision. JDC still strives at disclosing other clauses which surrounds this debt cancellation.