Bank of China provides $200 million loan in 2000 to shore up Pakistan's foreign exchange reserves (Linked to Record ID#54154, 54155)

Project narrative

Between the Government of Pakistan’s Fiscal Year 1997 (FY97) and Fiscal Year 1998 (FY98), Bank of China (BOC) provided three separate deposit loans to the State Bank of Pakistan (SBP) in order to shore up the country’s foreign exchange reserves. The first loan (captured via Record ID#54153), which was issued in FY97, was worth $200 million and it carried an initial maturity of 2 years and an interest rate of 8.87% (or LIBOR plus a 1% margin). However, it was rolled over three times and given a revised maturity date of May 2005. The second loan (captured via Record ID#54154), which was issued in FY97, was worth $150 million and it carried an initial maturity of 2 years and an interest rate of 8.32% (or LIBOR plus a 1% margin). However, it was rolled over three times and given a revised maturity date of February 2005. The third loan (captured via Record ID#54155), which was issued in FY98, was worth $150 million and it carried an initial maturity of 1 year and an interest rate of 8.08% (or LIBOR plus a 1% margin). It was rolled over four times and given a revised maturity date of February 2005. None of these loans were repaid on their revised maturity dates in 2005. In fact, SDP did not make its first principal repayment to the Bank of China until the first quarter of FY08. SBP repaid $100 million of principal and $16.5 million of interest in FY08. It repaid $200 million of principal and $58 million of interest in FY09. It was not until FY11 that SDP’s debts to the Bank of China were fully repaid.