Completed Mixed AidData Chinese Aid

China Eximbank provides $2 million loan to FSM Development Bank for on-lending purposes

$2M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Federated States of Micronesia Development Bank (FSMDB)
Country	Micronesia
Start Date	Sep 29, 2007
End Date	Jul 03, 2027
Duration	7,217 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`40027`

Grant Description

China Eximbank provides $2 million loan to FSM Development Bank for on-lending purposes In April 2006, during FSM President Joseph J. Urusemal's visit to Beijing, the FSM Secretary of Foreign Affairs signed a memorandum of understanding (MoU) with Mr.

Zhao Wenzhang, Vice President of China Eximbank regarding a $2 million credit line that would allow the Federated States of Micronesia Development Bank (FSMDB) to on-lend to local SMEs and Chinese firms.

According to a Chinese embassy press release, as of August 2007, China Eximbank and FSMDB were set to officially sign the inter-bank lending agreement 'in the near future.' A 2013 FSMDB report (p. 20) says the unsecured (i.e. uncollateralized) loan was ‘activated’ on September 29, 2007 with a 7.38% annual fixed interest rate.

Repayment of principal and interest began on January 21, 2009 in semi-annual principal installments of $200,000. As of December 31, 2012, the amount outstanding and payable was $400,000. FSMDB met the full repayment deadline on July 21, 2013.

📋 Staff Comments

1. This China Eximbank loan is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.

📚 Sources & References

2008 Annual Report Federated States of Micronesia Development Bank, 2009 Annual Report Federated States of Micronesia Development Bank, 2012 Annual Report of Federated States of Micronesia Development Bank, 2010 Annual Report of FEDERATED STATES OF MICRONESIA DEVELOPMENT BANK
China Overseas Development Finance
China in the Pacific: The New Banker in Town
Financial Statements and Independent Auditors' Report for 2012 and 2013
Financial Statements and Independent Auditors' Report for 2007 and 2008
Survey report on the financial environment of the Federated States of Micronesia, 2009 Report on the Audit of Financial Statements
Federated States of Micronesia Development Bank Financial Statements and Independent Auditors' Report for 2013
President Urusemal returns from China's Bo'ao Forum
I Federated States of Micronesia upfront bank lending business approved 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

Federated States of Micronesia Development Bank (FSMDB)

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