China Development Bank provides $200 million loan in 2019 to People’s Bank for on-lending activities
Commitment amount
$ 224712922.45242786
Adjusted commitment amount
$ 224712922.45
Constant 2021 USD
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Sri Lanka
Sector
Banking and financial services (Code: 240)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
No
Category
Project lifecycle
Description
On March 27, 2019, China Development Bank and People’s Bank of Sri Lanka signed a $200 million loan facility agreement to support on-lending activities. The loan carries an 8-year maturity and an interest rate. The loan facility agreement was signed by Chief Executive Officer/General Manager of People’s Bank, N. Vasantha Kumar, and CDB Guangxi Branch General Manager, Mei Shiwen, The signing ceremony was held at China Development Bank’s Guangxi Branch in Nanning, People’s Republic of China. However, in October 2021, the Chinese Embassy in Sri Lanka blacklisted the People’s Bank of Sri Lanka for failing to honor its contractual obligations. At the time, Chinese fertilizer enterprise Qingdao Seawin Biotech Group Co., Ltd requested payment of L/C from the People’s Bank of Sri Lanka according to the terms specified in a set of contracts. However, disregarding its contractual obligations, business rules, and international trade customs, the People’s Bank of Sri Lanka defaulted on the payment of L/C, creating large financial losses for Qingdao Seawin Biotech Group Co., Ltd, according to the Chinese Embassy in Sri Lanka.
Additional details
1. People's Bank is a state-owned commercial bank in Sri Lanka
Number of official sources
0
Number of total sources
7
Details
Cofinanced
No
Direct receiving agencies [Type]
People's Bank (Sri Lanka) [State-owned Bank]
Loan Details
Maturity
8 years