China Eximbank provides $2 million loan to FSM Development Bank for on-lending purposes

In April 2006, during FSM President Joseph J. Urusemal's visit to Beijing, the FSM Secretary of Foreign Affairs signed a memorandum of understanding (MoU) with Mr. Zhao Wenzhang, Vice President of China Eximbank regarding a $2 million credit line that would allow the Federated States of Micronesia Development Bank (FSMDB) to on-lend to local SMEs and Chinese firms. According to a Chinese embassy press release, as of August 2007, China Eximbank and FSMDB were set to officially sign the inter-bank lending agreement 'in the near future.' A 2013 FSMDB report (p. 20) says the unsecured (i.e. uncollateralized) loan was ‘activated’ on September 29, 2007 with a 7.38% annual fixed interest rate. Repayment of principal and interest began on January 21, 2009 in semi-annual principal installments of $200,000. As of December 31, 2012, the amount outstanding and payable was $400,000. FSMDB met the full repayment deadline on July 21, 2013.

Additional details

1. This China Eximbank loan is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.

Number of official sources

7

Number of total sources

9