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

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’.

Additional details

1. The Project ID number is SU-L1034. 2. The IDB lending spread in Semester 2 of 2013 was 0.84%. The IDB lending spread data are drawn from https://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=EZSHARE-1436601171-376. 3. AidData has estimated the all-in interest rate (1.243%) by adding 0.84% to the average 3-month LIBOR rate in July 2013 (0.403%). 4. The IDB-administered CHC loan contract can be accessed in its entirety via https://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=EZSHARE-2056220512-3470. 5. The CBvS was the executing agency of the loan, but it shared supervisory responsibility with the Ministry of Finance (MoF) as it was the Borrower and signatory of the loan contract.

Number of official sources

9

Number of total sources

11