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Overview

Chinese Government provides RMB 40 million interest-free loan — via ETCA — for unspecified purpose

Commitments (Constant USD, 2023)$9,784,780
Commitment Year•2005Country of Activity•Equatorial GuineaDirect Recipient Country of Incorporation•Equatorial GuineaSector•Unallocated/unspecifiedFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 20, 2005
First repayment (originally scheduled)
Oct 18, 2015
Last repayment (originally scheduled)
Oct 15, 2025

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 Ministry of Commerce

Receiving agencies

Government Agencies

  • Government of Equatorial Guinea

Loan description

Chinese Government provides RMB 40 million interest-free loan — via ETCA — for unspecified purpose

Grace period•10 yearsGrant element•75.0516%Interest rate (t₀)•0%Interest type•Fixed Interest RateMaturity•20 years

Narrative

Full Description

Project narrative

On October 20, 2005, 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 40 million 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 40 million as of December 31, 2019.

Staff comments

1. Since the borrowing terms of the interest-free loan are unavailable, AidData has set 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.