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[Umbrella] China Eximbank reschedules 3 loans for East Coast Housing Project and Les Mamelles Housing Project (Linked to records #55557, #67500, #67504)
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Government of Seychelles |
| Country | Seychelles |
| Start Date | Apr 18, 2011 |
| End Date | Mar 30, 2028 |
| Duration | 6,191 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 13307 |
Grant Description
Following an acute balance of payment crisis in 2008, the Republic of Seychelles put in place a comprehensive debt restructuring program to reduce sovereign debt as a percentage of GDP to 50% by 2020.
Part of this program involved an agreement in April 2009 with the Paris Club to restructure $160 million in bilateral debt.
Paris Club creditors agreed to a nominal debt stock cancellation of 45%, with the remaining amounts rescheduled over 18-years, including a 5-year grace period.
The restructuring agreement with the Paris Club also called upon Seychelles to restructure its outstanding obligations to other bilateral creditors and private creditors (who accounted for the majority of external debt). One of these creditors was China Eximbank. At the time, the Republic of Seychelles had three outstanding debt obligations to China Eximbank.
On August 4, 1997, China Eximbank and the Government of Seychelles signed an RMB 50,000,000 government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO.8 (97) 1997] for Phase 2 of the East Coast Housing Project.
Then, on August 20, 1998, China Eximbank and the Government of Seychelles signed an RMB 87,980,000 government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO.13 (38) 1998] for Phase 1 of the Les Mamelles Housing Project.
Then, on January 8, 2005, China Eximbank and the Government of Seychelles signed an RMB 8,305,000 government concessional loan (GCL) agreement [CHINA EXIMBANK GCL (2004) 11 (121)] for Phase 1 of Les Mamelles Housing Project.
On April 18, 2011, China Eximbank and the Republic of Seychelles agreed to reschedule all three of these loans.
The 2011 rescheduling of the loan for the Phase 2 of the East Coast Housing Project is captured in record ID#67504. The 2011 rescheduling of the loan for the Phase 1 of the Les Mamelles Housing Project is captured in record ID#67500.
The 2011 rescheduling of the additional loan for the Phase 1 of the Les Mamelles Housing Project is captured in record ID#55557.
According to the Government of Seychelles, in the run-up to the final debt rescheduling deal that was struck on April 18, 2011, it made several proposals to China Eximbank that were not accepted.
In December 2010, it proposed that China Eximbank spread its repayments over a 50-year period at an interest rate of 2.5%.
The Ministry of Finance of Seychelles claims that the second proposal was ‘in line with the Paris Club comparable debt treatment that Seychelles is obliged to seek for all restructuring of its debts.’
Staff Comments
1. Supplemental Agreement A can be accessed in its entirety via https://www.dropbox.com/s/btjbnpj08x1v0b9/2004%20Les%20Mamelles%20Rescheduling%20Agreement.pdf2. Supplemental Agreement D can be accessed in its entirety via https://www.dropbox.com/s/zneynuste1u710p/1998%20Les%20Mamelles%20Rescheduling%20Agreement.pdf3. Supplemental Agreement E can be accessed in its entirety via https://www.dropbox.com/s/etmceb8r55s6f4t/1997%20East%20Coast%20Housing%20Rescheduling%20Agreement.pdf
Sources & References
- China agrees to let Seychelles pay 47.5m dollar debt over 20 years
- Email correspondence between AidData and Seychelles Ministry of Finance
- EXIM BANK OF CHINA DEBT STATUS AND RESTRUCTURING NEGOTIATIONS, http://global.factiva.com/aa/?ref=BBCAP00020110421e74l001rx&pp=1&fcpil=en&napc=S&sa_from=, http://search.proquest.com.gate2.library.lse.ac.uk/docview/872447885/13EA8D3D84F4C5D21E1/1?accountid=9630
- RE: Request for List of Loans from Chinese Government Institutions to Seychelles
- RE: Request for List of Loans from Chinese Government Institutions to Seychelles
- Seychelles Gets Debt Reschedule Agreement With China
- The Supplemental Agreement A Of The Additional Loan To The Development Of Les Mamelles Housing Project Phase 1 Under The Chinese Concessional Loan
- The Supplemental Agreement D Of The Loan Agreement On The Development Of Les Mamelles Housing Project Phase -1 Under The Chinese Concessional Loan
- The Supplemental Agreement Of The Loan Agreement On East Coast Housing Project - Phase 2 Under The Chinse Concessional Loan 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.
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Government of Seychelles
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