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Overview

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

Commitments (Constant USD, 2023)$73,385,848
Commitment Year2005Country of ActivityTurkmenistanDirect Recipient Country of IncorporationTurkmenistanSectorUnallocated/unspecifiedFlow TypeLoan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 16, 2005
Start (actual)
Dec 31, 2012
End (actual)
Jan 1, 2016
First repayment
Dec 30, 2014
Last repayment
Dec 27, 2024

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

Government Agencies

  • China Ministry of Commerce

Receiving agencies

Government Agencies

  • Government of Turkmenistan

Implementing agencies

Government Agencies

  • Government of Turkmenistan

Loan desecription

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

Grace period10 yearsGrant element75.0516%Interest rate (t₀)0%Interest typeFixed Interest RateMaturity20 years

Narrative

Full Description

Project narrative

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.

Staff comments

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.