Reuters
Date: Jun 26, 2015

NIAMEY, June 26 (Reuters) – Export-Import Bank of the Republic of China, Taiwan’s state-owned Eximbank, will cut a more than 20 year old debt of $183 million owed by Niger to $20 million under an agreement announced by a senior government official on Friday.

Faced with mounting financial difficulties, the West African nation established diplomatic ties with Taiwan in 1992, and took out two loans with the island state’s Eximbank for a total $60 million before breaking off relations again in 1996 and formally recognising Beijing.

After the government failed to begin payments on the debt, Taiwan’s Eximbank pursued the case in a U.S. court and won a decision in 1998 that ordered Niger to pay $76 million.

“But the Nigerien state never responded to any order to pay. The interest rate increased and in 2015 the state of Niger found itself with a bill of $183 million,” the Niger government’s secretary general Gandou Zakara said.

Under the deal, Niger immediately paid $5 million. The remaining $15 million will be paid over a period of 20 years at an interest rate of 1.75 percent.     [FULL  STORY]