Bank of China provides $20 million loan for balance of payments support
Commitment amount
$ 50290755.34826618
Adjusted commitment amount
$ 50290755.35
Constant 2021 USD
Summary
Funding agency [Type]
Bank of China (BOC) [State-owned Commercial Bank]
Recipient
Bulgaria
Sector
General budget support (Code: 510)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
No
Category
Project lifecycle
Description
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.
Number of official sources
0
Number of total sources
14
Details
Cofinanced
No
Direct receiving agencies [Type]
Bulgarian National Bank [Government Agency]
Implementing agencies [Type]
Government of Bulgaria [Government Agency]
Loan Details
Maturity
5 years
Interest rate
4.83%
Grace period
0 years