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Overview

Chinese Government provides $2.5 million interest-free loan for critical underfunded areas

Commitments (Constant USD, 2023)$3,521,115
Commitment Year•2008Country of Activity•ZimbabweDirect Recipient Country of Incorporation•ZimbabweSector•Government And Civil SocietyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2008
Start (planned)
Feb 23, 2008
First repayment (originally scheduled)
Dec 29, 2017
Last repayment (originally scheduled)
Dec 27, 2027

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

Government Agencies

  • China Ministry of Commerce

Receiving agencies

Government Agencies

  • Government of Zimbabwe

Loan description

Chinese Government provides $2.5 million interest-free loan for critical underfunded areas

Grace period•10 yearsGrant element•75.0516%Interest rate (t₀)•0%Interest type•Fixed Interest RateMaturity•20 years

Narrative

Full Description

Project narrative

On 23 February, 2008, the Chinese Government signed an interest-free loan agreement worth $2.5 million with the Government of Zimbabwe for 'critical areas that need funds'. The Chinese Government was represented by Vice Minister of Commerce, Gao Hucheng, at the signing ceremony while the Zimbabwean Government was represented by the Acting Minister of Finance and Minister of Industry and Internatioanl Trade, Obert Mpofu. Information on the final disbursement of these funds and the relevant dates of implementation is uncertain.

Staff comments

Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20 years by default and grace period to 10 years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace.