Overview

China Ministry of Commerce (MOFCOM) provides RMB 20 million interest-free loan to Government of Bangladesh via July 2007 ETCA for the development of technical expertise among entrepreneurs (Linked to Record ID #110811)

Commitments (Constant USD, 2023)$33,231,291

Commitment Year•2007Country of Activity•BangladeshDirect Recipient Country of Incorporation•BangladeshSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jul 22, 2007

First repayment: Jul 23, 2017

Last repayment: Jul 22, 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 Bangladesh

Loan desecription

China Ministry of Commerce (MOFCOM) provides RMB 20 million interest-free loan to Government of Bangladesh via July 2007 ETCA for the development of technical expertise among entrepreneurs (Linked to Record ID #110811)

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

Narrative

Full Description

Project narrative

On July 22, 2007, Chinese Vice Minister of Commerce Wang Chao and Secretary of the Economic Relations Division of Bangladesh’s Ministry of Commerce Aminul Bhuiyan signed an ETCA agreement valued at RMB 100 million on behalf of their respective governments. The agreement consisted of two financial arrangements: an RMB 20 million interest-free loan earmarked for the development of entrepreneurial technical expertise in Bangladesh (captured in this record) and an RMB 80 million grant, which is captured in Record ID #110811.

Staff comments

1. As 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.