Narrative
Full Description
Project narrative
On January 29, 2004, the Chinese Government and the Government of Equatorial Guinea signed an Economic and Technical Cooperation Agreement (ECTA), which committed an RMB 40 million interest-free loan for unspecified purposes. According to the Autonomous Fund for Amortization of Public Debt (Caja Autónoma de Amortización de la Deuda Pública) within Equatorial Guinea’s Ministry of Finance and Budget, this loan had disbursed RMB 31,136,000 as of December 31, 2019. The borrower had not made any principal or interest payments as of December 31, 2019. As such, the loan's principal amount outstanding was RMB 31,136,000 as of December 31, 2019.
Staff comments
1. Since the borrowing terms of the interest-free loan are unavailable, AidData has set the maturity to 20 years by default and the grace period to 10 years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity of interest-free loans is 20 years, with a drawdown period of 5 years, a grace period of 5 years, and repayment over 10 years. 2. The proceeds of this loan may have been used to support the Bata Ministry of Foreign Affairs Office Building Construction Project (captured via Record ID#62476). This issue warrants further investigation. 3. This MOFCOM interest-free loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020.