Narrative
Full Description
Project narrative
During the first half of 2020, China Development Bank (CDB) entered into a $309,000,000 loan agreement with the National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU). The loan carries a 10-year maturity, a 3-year grace period, and a 4.8% interest rate. The proceeds of the loan were to be used by the borrower to refinance the projects related to trade cooperation under the Belt and Road with participation of Chinese enterprises. Loan disbursements in 2020 amounted to $202,193,933.
Staff comments
1. The loan's grace period is drawn from the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 and https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0 2. The DRS reports a slightly lower interest rate than NBU, which suggests that the loan may carry a floating rather than fixed interest rate. This issue warrants further investigation. See https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0