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Overview

China Development Bank provides a $10 million loan to Uruguayan Nuevo Banco Comercial S.A. for on-lending

Commitments (Constant USD, 2023)$12,861,385
Commitment Year•2010Country of Activity•UruguayDirect Recipient Country of Incorporation•UruguaySector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 15, 2010
Last repayment (originally scheduled)
Dec 31, 2013

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

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned Banks

  • Nuevo Banco Comercial

Loan description

China Development Bank and Uruguayan Nuevo Banco Comercial S.A. signed a 10 million USD cooperative agreement

Interest type•UnknownMaturity•4 years

Narrative

Full Description

Project narrative

On November 15th, 2010, China Development Bank and Uruguayan New Commercial Bank (now Scotiabank Uruguay S.A.) signed an agreement for a $10 million USD line of credit with a four year maturity period. The loan would be used for on-lending to small and medium sized enterprises in Uruguay that contribute to trade with China. Particular industries that will be targeted for financing included those that have high levels of exports to China, particularly the agricultural and agro-processing industry; those that rely on products from industries with high levels of exports from China such as industrial and electronic products; and industries that help facilitate logistics involved in trade itself, such as maritime or road transportation.

Staff comments

In 2011 the Canadian bank Scotiabank acquired the Uruguayan bank Nuevo Banco Comercial (NBC) [New Commercial Bank]. Agreement may have been suspended following the acquisition of NBC by Scotiabank in 2011. However, although it does not specify what the obligation is, the "Estados Contables al 31 de diciembre de 2011" lists debt obligations to China while the 2014 end of the year financial statements do not (pages 23 and 24 respectively).