China MOFCOM provides RMB 300 million interest-free loan for unspecified purposes

Between 2002 and 2013, the State Bank for Foreign Economic Affairs of Turkmenistan reported that it received loans from the China Development Bank (CDB) each year. AidData has coded the funding agency as MOFCOM as it is the sole administrator of China’s interest-free loan program. The sources that underpin this project record suggest that CDB was the funding agency. However, this very likely reflects the fact that MOFCOM disbursed the loan through a bank account that the borrower established with CDB. The first loan may have been issued on July 2, 2002; however, subsequent reports identified an amended issue date of July 16, 2005. This loan carried an interest rate of 0% and a maturity date of December 31, 2024. It is not known how the proceeds of this loan were used. The loan was disbursed between 2012 and 2016 according to the following schedule: 44,825 Thousand TMT in 2012, 43,673 Thousand TMT in 2013, 40,445 Thousand TMT in 2015, 42,065 Thousand TMT in 2015, and 14,108 Thousand TMT in 2016. These disbursements sum to approximately RMB 300 million.

Additional details

1. AidData has coded the funding agency as MOFCOM as it is the sole administrator of China’s interest-free loan program. The sources that underpin this project record suggest that China Development Bank was the funding agency. However, this very likely reflects the fact that MOFCOM disbursed the loan through a bank account that the borrower established with China Development Bank. 2. The commitment year is currently based on the July 16, 2005 loan issue date. 3. Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20 years by default and grace period to 10 years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace. 4. AidData has set the umbrella field to False since no specific subsidiary projects were identified, but five specific loan disbursements (drawdowns) were identified.

Number of official sources

2

Number of total sources

2