Active Development AidData Chinese Aid

China signs ETCA with Uruguay involving 20 million CNY interest-free credit

$20M USD

Funder	China Ministry of Commerce
Recipient Organization	Government of Uruguay
Country	Uruguay
Start Date	May 12, 2008
End Date	Feb 09, 2027
Duration	6,847 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`42027`

Grant Description

China signs ETCA with Uruguay involving 20 million CNY interest-free credit On 12 May 2008, the Chinese Government signed an Economic and Technical Cooperation Agreement with the Government of Uruguay through which it would extend a 20 million CNY (about 2.8 million USD) credit line (captured in this project) and a 20 million CNY donation (see Record ID#54994).

According to a document from the Central Bank of Uruguay, this credit would be associated with Loan Account No. 2008/1. China Development Bank and the Central Bank of Uruguay would manage this loan.

📋 Staff Comments

It is unclear whether these loan funds were used to finance any projects. The loan terms of other similar agreements are a 5-year grace period and a 15-year maturity, but the grace period and maturity of this specific credit are not specified in available documents so these loan details have not been coded. Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20-years by default and grace period to 10-years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20-years, with a drawdown period of 5-years, grace period of 5-years, and repayment over 10-years. AidData treats the drawdown period as providing 5-years of additional grace.

📚 Sources & References

URUGUAY-CHINA: MEJORA 40% RELACION COMERCIAL BILATERAL.
China donará 2,8 millones de dólares
中国同乌拉圭的关系
D/280/2009 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.