China Eximbank reschedules outstanding debt obligations of Ziscosteel by providing three years of additional grace (Linked to Project ID#17125, #63471, and #72785)

On January 29, 2010, the Export-Import Bank of China signed a debt rescheduling agreement with Zimbabwean state-owned steel company Ziscosteel (See: China reschedules Zimbabwe steel maker debt: minister). The agreement rescheduled $54.684 million USD of Ziscosteel’s outstanding obligations under a buyer’s credit loan that it originally contracted in 1997 for the Blast Furnace No.4 Project (see project #63471) (See: China reschedules Zimbabwe steel maker debt: minister). Ziscosteel had agreed to repay approximately $5 million USD per year, but it was only able to repay approximately $1 million USD per year, which prompted the 2010 rescheduling (See: Zimbabwe and China Sign Economic Agreement). China Eximbank provided an additional 3-year grace period to Ziscosteel, and Sinosure agreed to insure the agreement (See: China reschedules Zimbabwe steel maker debt: minister).The China Eximbank loan for Blast Furnace No.4 Project was rescheduled twice prior to the signing of the 2010 rescheduling agreement: once in 2003 and another time in 2007 (See: Debt Relief with Chinese Characteristics). The 2003 rescheduling of this loan (which reduced the interest rate to 4% from 7% and extended the maturity by 3 years) is captured in Project ID#17125. The 2007 rescheduling (which provided an additional 3 years of grace) is captured in the linked project #72785. The original 1997 loan is captured in Project ID#63471.

Number of official sources

2

Number of unofficial sources

9