MOFCOM provides RMB 20 million interest-free loan — via November 2009 ETCA — for unspecified purposes

On November 24, 2009, the Chinese Government and the Government Ecuador signed three Economic and Technical Cooperation Agreements (ETCAs). One of them provided an RMB 20 million interest-free loan for unspecified purposes. The original borrowing terms of the loan included a 20-year maturity, a 10-year grace period, a 0% interest rate, and a 0% default (penalty) interest rate. It is unclear if the loan proceeds were ever disbursed or utilized. The funds were to be managed by China Development Bank (CDB) and the Central Bank of Ecuador (Banco Central del Ecuador). The borrower was authorized to repay the loan in either freely convertible currency or Ecuadorian exportable goods agreed upon by the two governments. The loan was originally to be used over a 5 year period between December 1, 2009 and November 30, 2014. The repayment period was originally expected to run between December 1, 2019 and November 30, 2029. However, on January 7, 2015, the period over which the loan could be used (the availability period) was extended to December 1, 2014 and November 30, 2019, and the repayment period was extended to December 1, 2024 and November 30, 2034.

Additional details

1. The loan agreement can be accessed in its entirety via https://docs.aiddata.org/ad4/pdfs/how_china_lends/ECU_2010_458.pdf 2. This record should not be confused with Project ID#88169, which captures an ETCA that provided a 20 million RMB credit line as well, though in February 2009, not November 2009.

Number of official sources

6

Number of total sources

14