Bank of China provides $100 million deposit loan to shore up foreign exchange reserves in 2000

Project narrative

On December 20, 2000, Bank of China and the National Bank of Yugoslavia, which became the National Bank of Serbia (NBS) in early 2003, signed a $100 million ‘short-term’ deposit loan agreement to bolster the country’s foreign exchange reserves. The loan carried a 1-year maturity (final maturity date: December 20, 2001) and an unknown interest rate. The $100 million loan was then extended (‘rolled over’) multiple times through five consecutive 1-year maturity extensions in 2001 (final maturity date: December 20, 2002), 2002 (final maturity date: December 20, 2003), 2003 (final maturity date: December 20, 2004), 2004 (final maturity date: December 20, 2005), and 2005 (final maturity date: December 20, 2006). During calendar year 2006, NBS made a $25 million principal repayment to Bank of China; the remaining debt ($75 million of outstanding principal) was assigned to China’s State Administration of Foreign Exchange of China (SAFE) and granted a maturity extension (until December 20, 2007). Then, after NBS made a $25 million principal payment to SAFE in December 2007, the lender extended the final maturity date of the remaining $50 million from December 20, 2007 to December 20, 2008. In calendar year 2008, NBS made another $25 million principal payment to SAFE, bringing the total amount outstanding under the loan agreement to $25 million. The lender extended the final maturity date of the remaining $25 million from December 20, 2008 to December 20, 2009. Then, during calendar year 2009, NBS fully settled its outstanding debt by making a final $25 million principal payment to SAFE.