China says its ready to give Kenya debt service break

China says its ready to give Kenya debt service break

China has announced its holding talks with Kenya for a possible Debt service break to help the Country recover from the Economy deflation during the Coronavirus Pandemic.

Kenya Received Sh32.9 billion loan repayment break from the Paris Club of Countries as its interests for an additional Sh40.6 billion loan debt waiver from non-G20 countries to use revenues for Fighting the coronavirus pandemic.
According to the China Embassy statement to Nairobi, Kenya, It reads

“China attaches great importance to debt suspension and alleviation in African countries including Kenya and is committed to fully implementing the G20 Debt Service Suspension Initiative (DSSI),” the Chinese Embassy in Nairobi said.

“We stand ready to strengthen coordination with Kenya and assist Kenya in its efforts to address debt challenges. Both sides are now keeping efficient communication through smooth channel.”

The country’s biggest bilateral lender is China which Kenya is expected to pay Sh109.4 billion this year which includes the maturities of the second phase of the Standard Gauge Railway to Naivasha.

China stated that it has signed debt service suspension agreements with 12 African countries and provided waivers of matured interest-free loan for 15 African countries under the G20 framework.

The coronavirus pandemic has pushed Kenya into a crisis as the country faces an huge debt loan repayment while the tax revenues are Plunged.

The China International Development Cooperation Agency and also the Export-Import Bank of china have Implemented all the Eligible debt Suspension requests of the Developing Countries.

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