Narrative
Full Description
Project narrative
On August 4, 1997, China Eximbank and the Government of Seychelles signed an RMB 50,000,000 government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO.8 (97) 1997] for Phase 2 of East Coast Housing Project. The purpose of this project was to construct 160 housing units in the Roche Caiman district. The loan carried the following terms: 4% interest rate, 8-year maturity, and 3-year grace period. Loan repayments were to be made between 2000 and 2005. Total disbursements through this loan amounted to RMB 49,282,473. Then, on August 29, 2000, China Eximbank and the Government of Seychelles signed an agreement [CHINA EXIMBANK GCL NO.8A (97) 1997] to reschedule the repayment terms of this loan. The parties agreed that the outstanding balance of the loan (RMB 49,282,473) would be repaid according to the following repayment terms: a 4% interest rate, a 11-year maturity, and a 6-year grace period. The parties also agreed that repayments would be made between 2003 and 2008. Then, in 2001, China Eximbank and the Government of Seychelles signed a second agreement [CHINA EXIMBANK GCL NO.8B (18) (97) 1997] to reschedule the repayment terms of this loan. The parties agreed that the outstanding balance of the loan (RMB 49,282,473) would be repaid according to the following repayment terms: a 2% interest rate, a 11-year maturity, and a 6-year grace period. Then, on December 15, 2003, China Eximbank and the Government of Seychelles signed a third agreement [CHINA EXIMBANK GCL NO.8C (18) (97) 1997] to reschedule the repayment terms of this loan. The parties agreed that the outstanding balance of the loan (RMB 49,282,473) would be repaid according to the following repayment terms: a 4% interest rate, a 14-year maturity, and a 8-year grace period. The parties also agreed that repayments would be made between 2005 and 2011. Then, on February 23, 2006, China Eximbank and the Government of Seychelles signed a fourth agreement [CHINA EXIMBANK GCL NO.8D (18) (97) 1997] to reschedule the repayment terms of this loan. The parties agreed that the outstanding balance of the loan (RMB 49,282,473) would be repaid according to the following repayment terms: a 2% interest rate, a 14-year maturity, and a 10-year grace period. The parties also agreed that repayments would be made in eight, semi-annual installments of RMB 6.2 million ($900,000) between 2008 and 2011. Then, in August 2008, the Government of Seychelles made one principal payment of RMB 683,966 ($100,000) to China Eximbank. However, due to economic difficulties, the Government of Seychelles had difficulty servicing the loan even after the 2000, 2003, 2004, and 2006 reschedulings. Consequently, as of March 2011, principal and interest arrears (worth RMB 55,505,078.32) had accumulated. Then, on April 18, 2011, China Eximbank and the Government of Seychelles signed an agreement [CHINA EXIMBANK GCL NO.8E (18) 1997] to again reschedule the repayment terms of this loan. The parties agreed that the outstanding balance of the loan would be repaid according to the following repayment terms: 30.5-year maturity (367 months), 20.5-year grace period (247 months), and a 2% interest rate. The parties also agreed that repayments would be made in twenty, semi-annual installments between September 21, 2018 and March 4, 2028. The agreement also stipulated that the borrower could defer payment of an unpaid commitment fee (worth RMB 2,185.04) and unpaid accrued interest (RMB 11,880,770.45) to the first repayment date (September 21, 2018). This loan rescheduling was part of a larger debt restructuring agreement with China Eximbank that involved two additional loans (captured in Umbrella Record ID#13307). Record ID#73590 captures the 2000 loan rescheduling. Record ID#73591 captures the 2001 loan rescheduling. Record ID#73592 captures the 2003 loan rescheduling. Record ID#73593 captures the 2006 loan rescheduling. Record ID#67504 captures the 2011 loan rescheduling.
Staff comments
The Chinese project title is 援塞舌尔东海岸住房项目 or 塞舌尔东海岸二期住宅. In the database of Chinese loan commitments to African governments that SAIS-CARI released in 2020, it identifies the loan commitment year for Phase 2 of the East Coast Housing Project as 2007. However, the April 18, 2011 loan rescheduling agreement between China Eximbank and the Government of Seychelles clearly indicates that the loan for Phase 2 of the East Coast Housing Project was contracted on August 4, 1997. The Supplementary Agreement to the Loan Agreement can be found in its entirety via https://www.dropbox.com/s/etmceb8r55s6f4t/1997%20East%20Coast%20Housing%20Rescheduling%20Agreement.pdf