China Eximbank restructures 2005 additional loan for Phase 1 of Les Mamelles Housing Project in 2011 (Linked to Record ID#13307, ID#55633)

Project narrative

On January 8, 2005, China Eximbank and the Government of Seychelles signed an RMB 8,305,000 government concessional loan (GCL) agreement [CHINA EXIMBANK GCL (2004) 11 (121)] for Phase 1 of Les Mamelles Housing Project. The purpose of the project was to construct 203 housing units in the Les Mamelles administrative district, which is located in the south of the Greater Victoria area on Mahé, the main island of the archipelago. The loan carried the following terms: 2% interest rate, 10-year maturity, and 4-year grace period. Total disbursements through this loan amounted to RMB 8,213,615. However, due to economic difficulties, the Government of Seychelles had difficulty servicing this loan. Consequently, as of March 2011, principal and interest arrears (worth RMB 2,742,964.40) had accumulated. Then, on April 18, 2011, China Eximbank and the Government of Seychelles signed an agreement [CHINA EXIMBANK GCL NO.11A (121) 2004] to reschedule the repayment terms of this loan. The parties agreed that the outstanding balance of the loan (RMB 8,213,615) would be repaid according to the following repayment terms: 24.75-year maturity (297 months), 14.75-year grace period (177 months), and a 2% interest rate. The parties also agreed that repayments would be made in twenty, semi-annual installments between September 21, 2020 and March 13, 2030. The agreement also stipulated that the borrower could defer payment of an unpaid commitment fee (worth RMB 42.65) and unpaid accrued interest (RMB 500,117.89) to the first repayment date (September 21, 2020). This loan rescheduling, which went into legal force on March 11, 2014 , was part of a larger debt restructuring agreement with China Eximbank (captured in Umbrella Record ID#13307).