China Eximbank provides $334.7 million for Agricultural Machinery Acquisition Project (Linked to Record ID#63444)

Project narrative

On March 21, 2011, China Eximbank and the Government of Zimbabwe signed a $334.7 million buyer’s credit loan (BCL) agreement for the Agricultural Machinery Acquisition Project. The loan was signed in the presence of the Finance Minister of Zimbabwe, Tendai Biti, the President of the Export-Import Bank of China, Li Riougu, the Zimbabwean Vice President, Joice Mujuru, and the Vice Premier of China, Wang Qishan. It was also ratified by Zimbabwe’s Parliament. It carried the following terms: 11 year maturity, 4 year grace period, an interest rate of 3.507% (calculated by adding the 6-month LIBOR for March 2011,.507, plus a 3% margin: 0.507 + 3= 3.507%), a 0.375% management fee, and a 0.375% commitment fee. The purpose of this project was to facilitate for the acquisition of tractors and other agricultural machinery. As of May 2020, this loan had not yet been disbursed due to the fact that the Government of Zimbabwe did not meet a key condition of the loan agreement: the provision of a 10% down payment. As such, this loan appears to be inactive or in state of suspension. Zimbabwe’s Ministry of Finance and Economic Development did not identify this loan as an outstanding obligation in its 2019 Blue Book Estimates of Revenue and Expenditure. This project was financed as part of larger $566 million USD umbrella agreement, which is captured in the linked Record ID#63444.