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Overview

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

Commitments (Constant USD, 2023)$4,061,529
Commitment Year•2009Country of Activity•EcuadorDirect Recipient Country of Incorporation•EcuadorSector•Unallocated/unspecifiedFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 24, 2009
First repayment (originally scheduled)
Nov 22, 2019
Last repayment (originally scheduled)
Nov 19, 2029

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 Ecuador

Implementing agencies

Government Agencies

  • Banco Central del Ecuador

State-owned Policy Banks

  • China Development Bank (CDB)

Loan description

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

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

Narrative

Full Description

Project narrative

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.

Staff comments

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 Record ID#88169, which captures an ETCA that provided a 20 million RMB credit line as well, though in February 2009, not November 2009.