China Eximbank reschedules outstanding obligations under Agricultural Support Project loan via grace period extension (Linked to Project ID#18800)

On September 14, 2006, the Export-Import Bank of China and the Government of Zimbabwe signed a $200 million buyer's credit loan (BCL) for an Agricultural Supply Project, which is captured in the linked project #18800. The purpose of the project was to purchase inputs the country’s agriculture sector — including 387,000 tons of fertilizers, pesticides, agricultural tools and equipment, and irrigation equipment — that the Government of Zimbabwe was unable to purchase due to foreign currency shortages. The BCL carried the following terms: an 11 year maturity and a grace period of 5 years. China Eximbank allowed the Government of Zimbabwe to repay the loan with the proceeds from platinum mining revenues. It also collateralized the loan with a platinum mining concession (involving the Zimbabwe Mining Development Corporation and a Chinese company called Wanbao Mining) in a 110 square kilometer area known as the Selous and Northfields Reserves. By July 2012, the Government of Zimbabwe had fallen into arrears and China Eximbank agreed to extend the grace period of the loan from 5 years to 8 years. This project records this extension of the grace period by China Eximbank.

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