Overview

China’s SAFE provides $500 million deposit loan to shore up Pakistan’s foreign exchange reserves in FY 2017-2018 (Linked to Record ID#73341)

Commitments (Constant USD, 2023)$532,063,190

Commitment Year•2017Country of Activity•PakistanDirect Recipient Country of Incorporation•PakistanSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jul 1, 2017

First repayment (originally scheduled): Jul 1, 2019

Last repayment (originally scheduled): Jul 1, 2019

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

Government Agencies

China State Administration of Foreign Exchange (SAFE)

Receiving agencies

Government Agencies

State Bank of Pakistan (SBP)

Implementing agencies

Government Agencies

State Bank of Pakistan (SBP)

Loan description

China’s SAFE provides $500 million deposit loan to shore up Pakistan’s foreign exchange reserves in FY 2017-2018

Grace period•2 yearsGrant element•12.4867%Interest rate (t₀)•2.73844%Interest type•Variable Interest RateLoan tenor•12-month rateMaturity•2 years

Narrative

Full Description

Project narrative

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.

Staff comments

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 Record ID#73341). The loan was annually 'rolled over' until its final maturity (repayment) date of January 23, 2017.