China Development Bank provides $700 million loan in 2016 to shore up Pakistan’s foreign exchange reserves
Commitment amount
$ 826563155.8509271
Adjusted commitment amount
$ 826563155.84
Constant 2021 USD
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Pakistan
Sector
General budget support (Code: 510)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
No
Category
Project lifecycle
Geography
Description
On September 20, 2016, China Development Bank and the State Bank of Pakistan signed a $700 million short-term loan agreement to prevent a balance of payments crisis. The loan carried the following borrowing terms: a 3 year maturity and an interest rate of 6-month LIBOR plus a 3.02% margin. It fully disbursed.
Additional details
1. In its 2016-2017 Yearbook, the Economic Affairs Division (EAD) of the Government of Pakistan identified total loan commitments from CDB as $1.7 billion. This aggregate figure refers to the $700 million CDB loan issued in 2016 (captured via Project ID#50483) and the $1 billion CDB loan issued in 2017 (captured via Project ID#54158). 2. The all-in interest rate was calculated by adding 3.02% to the 6-month LIBOR rate in September 2016 (1.058%).
Number of official sources
12
Number of total sources
15
Details
Cofinanced
No
Direct receiving agencies [Type]
State Bank of Pakistan (SBP) [Government Agency]
Implementing agencies [Type]
State Bank of Pakistan (SBP) [Government Agency]
Loan Details
Maturity
3 years
Interest rate
4.078%
Grant element (OECD Grant-Equiv)
3.8475%