government debt

Tanzania’s president asks China to forgive some outstanding debts

Reuters
Tanzania’s president asks China to forgive some outstanding debts

GOVERNMENT DEBT. Tanzania's President John Magufuli addresses a news conference during his official visit to Nairobi, Kenya, October 31, 2016.

File photo by Thomas Mukoya/Reuters

Tanzanian President John Magufuli does not say the total amount of outstanding debt he wants forgiven by China

Tanzanian President John Magufuli on Friday, January 8, requested China to forgive some of the East African nation’s debts, including one incurred 50 years ago for the construction of a railway to neighboring Zambia.

The Tanzanian leader has in the past made the same request to other creditors. Last April, he asked international lenders like the World Bank to cancel debts to African nations, to give them fiscal room to battle the coronavirus.

Magufuli said he had presented the request to visiting Chinese Foreign Minister Wang Yi, as the two witnessed the signing of a deal for the construction of a 341-kilometer rail line by two Chinese firms.

“He will get our request to China so that they can see how they can forgive our debts because according to their concession laws it is very difficult to forgive debts,” the president said.

He did not say the total amount of outstanding debt he wanted forgiven by China.

Tanzania spends 700 billion shillings (about $300 million) every month to service its debts, with close to 200 billion shillings going to the World Bank, Magufuli said last year.

China is a close economic partner of Tanzania and Magufuli asked the Chinese government to consider funding the construction of a section of its planned new modern rail.

Magufuli, who was reelected to a second, 5-year term last October, is building several infrastructure projects. – Rappler.com

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