Home News China extends debt reduction to DR Congo amid COVID-19 disaster

China extends debt reduction to DR Congo amid COVID-19 disaster

6
0

The Democratic Republic of the Congo, a significant producer of cobalt and copper, has attracted billions of {dollars} in funding from Chinese language corporations in recent times.

China has granted some debt reduction to the Democratic Republic of the Congo (DRC) to assist it overcome financial fallout from the coronavirus pandemic, the Congolese overseas ministry mentioned on Wednesday.

Consequently, the DRC won’t must repay its interest-free loans from China that matured on the finish of 2020. The ministry didn’t say how a lot this amounted to.

China has prolonged debt reduction value over $2bn to growing international locations below a Group of 20 (G20) framework geared toward giving these hammered by the COVID-19 disaster some monetary respiratory area.

The most recent deal was introduced at a joint press convention in Kinshasa with Chinese language International Minister Wang Yi.

“As Congo’s most dependable buddy, China needs to proceed to make its contribution to Congo’s improvement,” Wang was quoted as saying within the Congolese ministry’s assertion.

In response to knowledge gathered by Johns Hopkins College’s China Africa Analysis Initiative, Chinese language entities have prolonged 53 loans to the Democratic Republic of the Congo between 2000 and 2018, amounting to a complete of $2.4bn. A lot of the lending was focussed on the facility, transport and mining sectors.

The main cobalt and copper producer has attracted billions of {dollars} in funding from Chinese language miners in recent times.

Congo’s exports to China surged 30 p.c in 2020 in contrast with the earlier yr.