China has said that it will cancel certain loans it gave to some African countries which are due for repayment this year.
Particularly loans with zero-interest rate due at the end of 2020 are to be canceled, according to state television reporting.
President Xi Jinping said in speech at the China-Africa summit that “China will cancel the debt of relevant African countries in the form of interest-free government loans that are due to mature by the end of 2020.”
He added that “For those African countries that are hardest hit by the coronavirus and are under heavy financial stress, China will work with the global community to give them greater support, by such means as further extending the period of debt suspension, to help them tide over the current difficulty.”
China is also urging the West to also consider debt cancellation for Africa just as it intends doing.
“China hopes that the international community, especially developed countries and multilateral financial institutions, will act more forcefully on debt relief and suspension for Africa,” Presdient Jinping sand.
The Chinese leader also noted that “to help Africa achieve sustainable development is what matters in the long run.
China supports Africa in its effort to develop the African Continental Free Trade Area and to enhance connectivity and strengthen industrial and supply chains.”
Jinping also revealed that “China will explore broader cooperation with Africa in such new business forms as digital economy, smart city, clean energy, and 5G to boost Africa’s development and revitalization.”