China Eximbank reschedules a $100 million loan for Serbia
Summary
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Recipient
Serbia
Sector
Action relating to debt (Code: 600)
Flow type
Debt rescheduling
Level of public liability
Central government debt
Infrastructure
No
Category
Project lifecycle
Description
On December 23, 1999, the Federal Republic of Yugoslavia (FRY) contracted a $100 million loan with China Eximbank for currency stabilization purposes. The loan had a 5 year maturity and a 20 month grace period, and it was to be repaid in semi-annual installments until January 2005. After the dissolution of FRY, the Republic of Serbia assumed responsibility for this debt. On February 20, 2009, the loan agreement was restructured and all rights and liabilities from this loan were transferred to China Export & Credit Insurance Corporation (Sinosure). The new loan had a 10.5 year repayment period (between July 21, 2010 and January 21, 2021), a 1.5 year grace period (February 20, 2009 to July 21, 2010), and an interest rate set to 6-month Libor + a 1.30% margin. As of June 30, 2012, the outstanding principal debt was $67.7 million. As of December 31, 2018, the loan was still being repaid in accordance with the terms of the agreement in semi-annual installments. As of 2020, the remaining principal to be paid was $9,201,080.
Additional details
The average 6 month LIBOR rate in February 2009 was 1.757%, so AidData codes the all-in interest rate as 1.757% + 1.3% = 3.057%. No transaction amount is recorded since this project represents a loan rescheduling, not an original flow of resources to recipient country.
Number of official sources
13
Number of total sources
14
Details
Cofinanced
No
Direct receiving agencies [Type]
Government of Serbia [Government Agency]
Insurance provider [Type]
China Export & Credit Insurance Corporation (Sinosure) [State-owned Company]
Loan Details
Maturity
12 years
Interest rate
3.057%
Grace period
2 years
Grant element (OECD Grant-Equiv)
15.1458%