China’s SAFE provides $500 million deposit loan to shore up Pakistan’s foreign exchange reserves in FY 2017-2018 (Linked to Project ID#73341)
Commitment amount
$ 576169078.5104868
Adjusted commitment amount
$ 576169078.53
Constant 2021 USD
Summary
Funding agency [Type]
State Administration of Foreign Exchange (SAFE) [Government Agency]
Recipient
Pakistan
Sector
Banking and financial services (Code: 240)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
No
Category
Project lifecycle
Description
In FY 2017-2018, China’s State Administration of Foreign Exchange (SAFE) provided a $500 million loan to the State Bank of Pakistan in order to shore up the country’s foreign exchange reserves. The loan carried the following terms: a 2-year maturity, a 2-year grace period, and an interest rate of 12-month LIBOR plus a 1% margin.
Additional details
1. The all-in interest rate was calculated by adding 1% to the average, 12-month LIBOR rate in 2018 (2.759%). 2. The precise loan commitment date is unknown. This issue requires further investigation. For the time being, AidData assumed that the loan contracted in Fiscal Year 2017-2018 was contracted in calendar year 2017, and the commitment date is coded as July 1, 2017. 3. In January 2009, SAFE issued a $500 million deposit loan to SBP (as captured via Project ID#73341). The loan was annually 'rolled over' until its final maturity (repayment) date of January 23, 2017.
Number of official sources
5
Number of total sources
7
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
2 years
Interest rate
3.759%
Grace period
2 years
Grant element (OECD Grant-Equiv)
5.7429%