Active Development AidData Chinese Aid

CDB provides $1 billion loan to strengthen the country’s foreign reserves and preserve macroeconomic stability (Linked to Record ID#89462 and #102315)

¥1M RMB

Funder	China Development Bank (CDB)
Recipient Organization	Central Bank of Egypt
Country	Egypt
Start Date	Jan 23, 2016
End Date	Jul 26, 2031
Duration	5,663 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`52881`

Grant Description

CDB provides $1 billion loan to strengthen the country’s foreign reserves and preserve macroeconomic stability On January 23, 2016, the President of China, Xi Jinping, and the Egyptian President, Abdel Fattah El-Sisi, signed a liquidity support facility (LSF) agreement wherein China Development Bank agreed to provide a $1 billion loan to the Central Bank of Egypt.

📋 Loan / Grant Terms

📅 Maturity11 years

⏳ Grace Period3 years

The purpose of the loan was to help the Central Bank of Egypt shore up the country’s foreign exchange reserves in the face of pressure on the Egyptian pound.

According to CDB, its Qingdao Branch and the CDB Cairo Representative Office organized a $900 million disbursement shortly after the LSF agreement was signed.

Reporting from the Central Bank of Egypt suggests that CDB subsequently ‘upsized’ the face value of the liquidity support facility agreement from $1 billion to $2 billion. However, the precise timing of this increase in the face value of the loan is unknown.

The Central Bank of Egypt reports that the amount outstanding under the LSF was $1.8 billion as of September 2019, $1.5 billion as of September 2020, $1.6 billion as of December 2020, $1.3 billion as of March 2021, $1.3 billion as of June 2021, $1.1 billion as of September 2021, $1.1 billion as of December 2021, $842.9 million as of March 2022, $817.8 million as of June 2022, $560.5 million as of September 2022, $567.2 million as of December 2022.

On October 18, 2023, during the Third Belt and Road Forum for International Cooperation in Beijing, China Development Bank (CDB) and the Central Bank of Egypt signed an RMB 7 billion liquidity support facility (LSF) agreement.

📋 Loan / Grant Terms

💰 Loan Amountinclude a 5-year maturity

📅 Maturity5 years

💹 Interest Rate3.7%

This new liquidity support facility effectively refinanced and replaced the previous LSF. The new loan fully disbursed on October 30, 2023.

The Central Bank of Egypt reports that the amount outstanding under the LSF was $1.1 billion in December 2023, and $963 million in June 2024.

📋 Staff Comments

According to the Chinese Government, the Qingdao Branch of CDB provided an RMB 7 billion (approximately $1 billion) loan to the Central Bank of Egypt in 2018. For the time being, AidData has coded the commitment year for the $1 billion LSF upsizing as 2018.
The Chinese project title is 央行10亿美元授信项目.
The loan's interest rate (4.7352%) is drawn from the World Bank's Debtor Reporting System (see https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0).
The amounts outstanding under the LSF that are reported by the borrower likely include the additional RMB 8 billion CDB loan (埃及央行70亿人民币授信项目) in 2018.
The new LSF committed in October 2023 effectively refinanced and replaced the 2016 facility. Therefore, the $560 million balance in 2022 was assumed to be repaid in 2023 and replenished by the new facility.

📚 Sources & References

China/Middle East and Africa economy: Chinese president treads softly in Mi
Egypt
China Presidents Attend Signing of 21 Agreements
China Offers Egypt $US 1 Billion Loan Coinciding With 60th Anniversary of Diplomatic Ties
China's Xi promises 'billions' in investment during Egypt visit
China to lend Egypt c.bank $1 bln during president's visit: ambassador
China's Xi visits Egypt, offers financial, political support
埃媒：习近平访问埃及中国将提供10亿美元贷款
习近平访问埃及中国将提供10亿美元贷款
埃媒：习近平访问埃及中国将提供10亿美元贷款
习近平访埃期间中国将向埃及央行提供10亿美元贷款--埃及大使
中国将给埃及10亿美元贷款签6000万美元合同
国开行“雪中送炭” 创新务实开展对埃大额合作, https://al-sharq.com/article/21/01/2016/%D8%A7%D9%84%D8%B5%D9%8A%D9%86-%D8%AA%D9%85%D9%86%D8%AD-%D9%85%D8%B5%D8%B1-%D9%82%D8%B1%D9%88%D8%B6%D8%A7%D9%8B-%D8%A8%D9%801-8-%D9%85%D9%84%D9%8A%D8%A7%D8%B1-%D8%AF%D9%88%D9%84%D8%A7%D8%B1?__cf_chl_jschl_tk__=b2f9b91fb27f66ac13da7e2c220f1f984560468b-1586622893-0-AQ3rkDQknWyA5fZJAmuNZ2UtH6oedeDFR4q58wKnJHL3hUOMsojnTrYQGPpz0k4fHnpO0s4EU63HCs5qfHUJth4tZXDdAqtlgzTCSQAxG0ufYw6JLISWXqTrBqaeEJwf9zQ0vCsHZybeRIqQNenL185ikOdLg8rPKYA8JDCgchopFmOBsY0SfNvtJ4g_l1achdQdPM6tn911rRlftqVoC11GfmQIHQgOwdi9MUhUNG1j2fGyzc_76bskaUn3SodTM_6aOTIYhyFZ-FcwmKTwOdf01skJJ3eb98YZF38M2ya7xornAMIPcE5lXarhwa1kMWzBvA_VObxtWBOHoRTDdilSuj2WIOrioGr9Hy3mIOR7CcGsUtH9Uiwe5SNct4BLOWtzlhIQuCeouQ3W4avy-hbcc3lQRCj5KJ-GQpM6lbcKnZ5U_BaxB-Sqv-Q1m6qHqdiH1aEdVu0CGRPQdmcl5TfB6TCsaDdG3GWHdZ8B-BUKIEvmbkygITRKJ-YVhxHkE0qdkWqJ10n0wqWy3pMufL4NkhudFbkfYKV272TYOD84, الصين تمنح مصر قروضًا بقيمة 1.8 مليار دولار
中非民间商会赴埃及考察总结 - 中非民间商会官方网站
埃及央行获得国开行10亿美元贷款
国开行实现对埃金融机构14.25亿美元贷款发放 - 中国开发性金融促进会
埃及央行获得国开行10亿美元贷款补充流动性增强外汇储备
External Position of the Egyptian Economy July/March 2018/19
Annual Report 2015-2016
Egypt External Position Quarterly Report Volume No. 54 2015-2016
External 63
对外投资合作国别（地区）指南埃及
中国驻埃及使馆经商参处：2018年中埃双边经贸合作稳中有进-泰达合作区 -北方网企业建站
Chinese Loans to Africa Database
China's Overseas Development Finance
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Volume No. (62)
External Position of the Egyptian Economy: July/December 2020/2021
Volume No. (72)
External Position of the Egyptian Economy-july september 2019/2020, eip.gov.eg/IDSC/Upload/Publication/FullFile_A/4981
青岛年鉴2019
国开行实现对埃金融机构14.25亿美元贷款发放
CDB widens global lending
Page 312 - Qingdao Y earbook 2019
银行业
External Position of the Egyptian Economy Volume No 76
Annual Report 2019/2020
Central Bank of Egypt External Position of the Egyptian Economy July/December of FY2021/2022 Volume No. (76)
Central Bank of Egypt External Position of the Egyptian Economy Fiscal Year 2021/2022 Volume No. (78)
Central Bank of Egypt External Position of the Egyptian Economy July/December 2020/2021 Volume No. (72)
Central Bank of Egypt External Position of the Egyptian Economy July/September 2020/2021 Volume No. (71)
External Position of the Egyptian Economy July/September 2020/2021 Volume No. (71)
External Position of the Egyptian Economy July/September 2021/2022 Volume No. (75)
External Position of the Egyptian Economy July/September 2022/2023 Volume No. (79)
Annual Report 2018/2019
Central Bank of Egypt External Position of the Egyptian Economy July/December 2022/2023 Volume No. (80)
RDC - Contrat chinois : Un centre de recherche dénombre 40 infrastructures réalisées mais surfacturées à 824 millions $
CDB widens global lending 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

Central Bank of Egypt

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