[China Co-financing Fund] IDB administers $50 million loan from CHC to Government of Suriname for Financial Sector Strengthening II Project

Project narrative

On July 9, 2013, the Inter-American Development Bank (IDB) signed two loan contracts with the Government of Suriname to finance the Financial Sector Strengthening II Project. The IDB provided $50 million from its ordinary capital (Loan 2947/OC-SU), and the People's Bank of China provided $50 million (Loan 2948/CH-SU) through its IDB-administered China Co-Financing Fund for Latin America and the Caribbean (CHC). The proceeds from these two loans were used by the borrower to finance the total $100 million cost of the project. The IDB approval date for these two loans was June 19, 2013. Loan 2948/CH-SU carried a 20 year maturity period, a 5.5 year grace period (including a 2-year disbursement period, a LIBOR-based interest rate plus the applicable lending spread for the IDB’s ordinary capital loans, and a commitment (credit) fee of 0.7%. The overall objectives of the Financial Sector Strengthening II Project were: (i) to improve the effectiveness of financial institutions and markets in providing credit and other financial services to firms and households; and (ii) to reduce their vulnerability to macroeconomic shocks. The specific objectives were: (i) the enhancement of the enabling environment in which financial markets and institutions operate, both public and private; and (ii) the strengthening of Central Bank capabilities to execute its core responsibilities. The project was funded through a Programmatic Policy-Based Loan and executed by the Central Bank of Suriname (CBvS). The IDB lists the project status as ‘Closed’.