Loading grant details…
China’s SAFE provides $500 million deposit loan to shore up Pakistan’s foreign exchange reserves on June 27, 2023
| Funder | China State Administration of Foreign Exchange (SAFE) |
|---|---|
| Recipient Organization | Government of Pakistan |
| Country | Pakistan |
| Start Date | Jun 27, 2023 |
| End Date | Oct 29, 2033 |
| Duration | 3,777 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 102317 |
Grant Description
China’s SAFE provides $500 million deposit loan to shore up Pakistan’s foreign exchange reserves on June 27, 2023 On June 27, 2020, China’s State Administration of Foreign Exchange (SAFE) provided a $500 million loan to State Bank of Pakistan in order to shore up the country’s foreign exchange reserves.
On June 27, 2021, the $500 million SAFE deposit loan from 2020 was repaid and reissued (i.e. 'rolled over') with a maturity date of June 27, 2022.
One year later, on June 27, 2022, the $500 million SAFE deposit loan from 2021 was repaid and reissued (i.e. 'rolled over') with a maturity date of June 27, 2023.
The Government of Pakistan announced in early June 2023 that it intended to repay and rollover the loan on June 27, 2023.
Then, on June 27, 2023, the $500 SAFE deposit loan from 2022 was repaid and reissued (i.e. 'rolled over) with a maturity date of June 27, 2024.
Staff Comments
- According to an April 4, 2023 report from the National Assembly of Pakistan, ‘[a]ll of Chinese commercial bank maturities during FY23 will be rolled over. Chinese authorities have assured the rollover of SAFE deposits, refinancing of bank loans and increase in the SWAP line from RMB 30 billion to RMB 40 billion. Government has recently received US$ 700 mn from CDB and further inflows are in pipeline from ICBC.’ 2. June 30, 2023 marked the cessation of the USD LIBOR panel. SOFR then became the dominant interest rate benchmark for USD-denominated borrowings.
- For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
Sources & References
- NATIONAL ASSEMBLY SECRETARIAT (6th Group, 51st Session) “QUESTIONS FOR ORAL ANSWERS AND THEIR REPLIES” to be asked at a sitting of the National Assembly to be held on Wednesday, the 5th April, 2023
- China rolls over $2bn loan for a year
- Govt requests $2b loan rollover
- China Continues to Rescue Pakistan Amid Uncertain IMF Bailout
- China Keeps Rescuing Pakistan Amid Uncertain IMF Bailout
- China to roll over $300m in three to four days: Dar
- China returns $1 billion loan: SBP
- Pakistan seeks fast-track refinancing of $1.3b loans
- Dar hopes to maintain reserves level at $4b
- Chapter 5 Domestic and External Debt
- Public Debt Bulletin July-December 2022
- PAKISTAN REQUEST FOR A STAND-BY ARRANGEMENT—PRESS RELEASE; STAFF REPORT; STAFF STATEMENT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR PAKISTAN (IMF Country Report No. 23/260)
- Pakistan seeks $600mn in loans from Chinese banks
- Govt’s tenure to end on Aug 14, says PM Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Government of Pakistan
Interested in applying for this grant?
Complete our application form to express your interest and we'll guide you through the process.
Apply for This GrantQuick Summary
Related Grants
