China Development Bank provides JMD $887,524,000 loan to the Development Bank of Jamaica for on-lending purposes

On February 12, 2009, the Chinese Government and the Government of Jamaica signed a set of agreements to facilitate expansion of technical and economic cooperation, which included a $10 million loan agreement between the Development Bank of Jamaica (DBJ) and China Development Bank (CDB). According to DBJ annual reports, CDB provided a JMD $887,524,000 loan to the DBJ in 2009 for on-lending to projects that involved the purchase of goods and services from China. The loan carried the following terms: a maturity of 5 years, a grace period of 1 year, and an annual interest rate of 6-month LIBOR plus 310 basis points. Repayment of the loan commenced on October 19, 2010. This loan was repaid in full by April 2014.

Additional details

1. This CDB loan agreement was signed at the same time as the agreements captured via Project ID#39981 #39778 #39781. 2. The 6-Month LIBOR rate is not identified in any of the underlying sources, so AidData used average 6-Month LIBOR from 2009 (1.100%) to calculate the all-in interest rate (1.10% + 3.10% = 4.20%). 3. The Development Bank of Jamaica is a corporation wholly owned by the Government of Jamaica and is mandated to foster economic growth and development of strategic sectors of the Jamaican economy. 4. The China-Latin America Finance Database, which is co-produced by the Inter-American Dialogue and Boston University’s Global Development Policy Center, identifies the face value of this CDB loan as $20 million. AidData relies on the official figure (JMD 887,524,000) that is reported in the DBJ annual reports, which is equivalent to approximately $10 million.

Number of official sources

10

Number of total sources

15