[Cancelled] Chinese Government provides RMB 330 million low-interest loan for acquisition of 4 MA-60 aircraft for the Ecuadorian Air Force (Linked to Project ID#64953)

On November 24, 2009, the Chinese Government and the Government of Ecuador signed a series of Economic and Technical Cooperation Agreements (ETCAs), which are captured in Project ID#64953. One of these ETCAs codified an official commitment from the Chinese Government to the Government of Ecuador for an RMB 330 million ($50 million) loan to facilitate the acquisition of 4 MA-60 aircraft for the Ecuadorian Air Force (FAE) for civil transport, medical, and humanitarian assistance purposes. The loan carried a 20 year maturity and a 2% interest rate. The proceeds of the loan were to be used by the borrower to finance a $60 million commercial contract with China National Aero-Technology Import & Export Corporation. At the time that the agreement was signed, the commander of the FAE, Rodrigo Bohórquez, noted that the MA-60 planes would replace a set of 45-year old AVRO planes. However, in November 2010, due to problems with the financing of the purchase, the number of aircraft was reduced to two and the face value of the loan was reduce to $38 million. Then, in July 2011, FAE announced that it would not purchase the two MA60 transport aircraft from China due to a disagreement on the technical characteristics of the engines with the manufacturer, Xi'an Aircraft Industrial Corporation.

Number of official sources

2

Number of total sources

12