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Overview

Bank of China provides $20 million loan for balance of payments support

Commitments (Constant USD, 2023)$46,450,435
Commitment Year•2001Country of Activity•BulgariaDirect Recipient Country of Incorporation•BulgariaSector•General Budget SupportFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 1, 2001
Start (actual)
Jun 1, 2001
End (actual)
Dec 1, 2001
Last repayment (originally scheduled)
May 31, 2006

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 Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Government Agencies

  • Bulgarian National Bank

Implementing agencies

Government Agencies

  • Government of Bulgaria

Loan description

Bank of China provides $20 million loan for balance of payments support

Interest rate (t₀)•4.93%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•5 years

Narrative

Full Description

Project narrative

On June 29, 2000, Ivan Kostov, the Prime Minister of Bulgaria announced that the Chinese Government had decided to increase the size of a loan to his government for balance of payments support from $10 million to $20 million. A $10 million loan agreement had previously been discussed with the Chinese Government during the 1999 visit of Nadezhda Mihailova, Bulgaria's Foreign Minister, to China. Then, on June 1, 2001, Bank of China and the Government of Bulgaria signed a $20 million loan agreement [кредитно споразумение между Република България и банка "Китай" за заем в размер на 20 млн. щатски долара]. It was subsequently ratified by Bulgaria’s Parliament. Bulgaria’s Ministry of Finance later confirmed that the loan was fully disbursed in a single tranche in December 2001. The loan carried the following borrowing terms: 5-year maturity, no grace period, and an annual interest rate of 6-month LIBOR (3.830% in June 2001) plus a 1% margin. The ultimate purpose of the loan was to help the Government of Bulgarian avert a balance of payments crisis.