/ 14 May 2007

China writes off 40% of Côte d’Ivoire debt

The government of Côte d’Ivoire said on Monday that China has written off 40% of the debt it was owed by the West African state, during a visit by the Ivorian foreign minister to the Asian economic giant.

The cancelled debt amonuted to €18-million and Beijing also extended a new €10-million gift to the country, the Ivorian Foreign Ministry said in a statement.

The deals were cut by Ivorian Foreign Affairs Minister Youssouf Bakayoko during his five-day visit to Beijing, which wrapped up on Monday.

China also committed millions of euros to the construction of a hospital and rural schools, and granted €1-million in an interest-free loan.

Bakayoko also thanked Beijing for ”the priceless support” the Chinese government has given to the peace process in the divided country, which reached a new peace deal in March between the government and New Forces rebels designed to reunify the Côte d’Ivoire.

He also sought more aid to help organise post-war elections expected this year and for reconstruction programmes.

Since the beginning of a political crisis in 2002, when the country was split between the government and rebel forces after a failed coup against President Laurent Gbagbo, China has given tens of millions of euros for construction work in the political capital Yamoussoukro.

Chinese firms built a large parliamentary complex there and funded 72% of the €33-million building, while Beijing is also financing a new presidential palace.

China is keen to gain access to Africa’s massive raw material reserves to help fuel its economy’s breakneck growth.

Côte d’Ivoire is the world’s leading cocoa producer, supplying 40% of the international supply. — Sapa-AFP