(KDRTV)-China has announced its plan to cancel interest-free loans to African countries that were supposed to be paid by the end of 2020
According to president Xi Jinping, the move is to help nations that are hardest hit by the novel coronavirus to stabilize financially
The president who was addressing the China-Africa summit on Covid-19 on Wednesday also announced that such countries will be granted an extension of the period of debt suspension
The president urged the Chinese financial institutions to always hold friendly consultations with African nations to plan on how the would mutually handle the loans
“China will work with the UN, WHO and other partners to assist Africa’s response to Covid-19, and do it in a way that respects the will of Africa,” said the president
The president also said that African countries will be the first beneficiaries of Chinese-made coronavirus vaccine. At the same time he announced that China will be building many hospitals across Africa
The president also hinted that China will build headquarters of Africa Center for Disease Control in Ethiopia`s capital Addis Ababa.
KDRTV understands that there has been a rift between the United States of America and China over scramble to dominate the economy of Africa.
Previously, the US had advised African nations to be very cautions while seeking loans from China, at some points terming them set-ups for the poor African countries.