Eritrea had borrowed the money as a soft loan in 1994 to buy Chinese agricultural machinery.
China is a major development partner of Eritrea.
It had already financed a number of development projects, including a 200-bed hospital in Asmara, which was under construction, said Shaebia. The loan will be used to purchase approximately 81,000 mt tonnes of wheat and sorghum, Visafric said. The agreement between the two countries was signed by US Ambassador to Eritrea William D. Clarke and Dr Woldai Fitur of the Eritrean government in Asmara, the Eritrean capital. Eritrea is expected to repay the loan, at one percent interest, within 30 years. This is a public posting area.