Dominica Agricultural Industrial and Development Bank borrows EC$883,883 from China Eximbank to support on-lending activities

In the Fiscal Year 2020, Dominica Agricultural Industrial and Development Bank (DAIB) — a bank that is majority-owned by the Government of the Commonwealth of Dominica (GOCD) — borrowed EC$883,883 from China Eximbank to support on-lending activities. The loan was guaranteed by the GOCD. According to the DAIB, the loan's interest rate was between 2% - 7%.

Additional details

1. The 2020 annual report of the Dominica Agricultural Industrial and Development Bank identifies the ‘Republic of China’ as the lender. However, given that Dominica severed diplomatic ties with Taiwan in May 2004, the lender is almost certainly the People’s Republic of China (PRC). Reporting by the International Monetary Fund (IMF) and China’s Ministry of Commerce (MOFCOM) corroborates the existence of a lending relationship between the PRC and Dominica Agricultural Industrial and Development Bank. 2. The precise financial commitment date is unknown. However, it is known that the EC$883,883 borrowing took place between July 1, 2019 and June 30, 2020. 3. For evidence that the lender is China Eximbank, see https://www.dropbox.com/s/jwlm7akcczpmbgr/New%20AID%20Bank%20Chairman%20outlines%20plans%20for%20the%20bank%20-%20GIS%20Dominica.pdf?dl=0 and https://www.dropbox.com/s/jntz051chitv5pp/Rationale%20-%20Dominica%20AID%20Bank%20June%204%2C%202013%282%29.pdf?dl=0. 4. This China Eximbank loan is not captured in the China-Latin America Finance Database, which is co-produced by the Inter-American Dialogue and Boston University’s Global Development Policy Center

Number of official sources

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