China loans government US $2.5 million

The Central African Republic (CAR) has signed an interest-free loan agreement of 1.5 billion francs CFA (US $2.5 million) with the People's Republic of China for the implementation of social and economic development projects, state-owned Radio Centrafrique reported on Saturday. The loan to the CAR, which is due for repayment in May 2008, comes two months after China’s donation of $2.5-million to the government for the payment of civil service salaries for April. China was the first nation to grant financial aid to the administration of the new ruler in Bangui, Francois Bozize, since he overthrew President Ange-Felix Patasse on 15 March. In addition, China has announced the resumption of other aid programmes to the country, suspended because of the coup. These include the construction of a 20,000-seat football stadium; 100 low-cost apartments in the capital Bangui; technical support to Radio Centrafrique; a third major hospital in Bangui and other agricultural projects. The Chinese loan, signed in Bangui on Saturday, follows a $ 9.1-million grant from the Economic and Monetary Community of Central African States. Regional heads of state made this grant on Tuesday in Libreville, Gabon, to support the CAR's reconstruction efforts. Meantime, the European Community also announced that it would continue its aid to the country. EC Ambassador to CAR Joseph Lloveras said on Friday that cooperation programmes, which were under way, would continue. "Those that were already approved will be implemented," he said. He announced this on Radio Centrafrique after his meeting with CAR Junior Finance Minister Daniel Boyssembe. Lloveras said that implementation of projects included in the 2002-2007 strategic programmes would depend on the conclusions of the EC-CAR consultations scheduled for Thursday in Brussels, Belgium. CAR Prime Minister Abel Goumba, who toured Europe from 5-20 May in search of international approval for his government, obtained an EC approval for consultations on 12 June on the recognition of the government in Bangui. In May, the EC disbursed $1.79 million to CAR for an emergency health programme in nine war-affected provinces. Lloveras said that the EC recently granted money for civil and military pensions, and was involved in grading rural roads.