Completed Mixed AidData Chinese Aid

China Eximbank provides $8.5 million buyer’s credit loan for Iran's Bank of Industry and Mine to produce sodium carbonate used in glass manufacturing

$8.5M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Iran Bank of Industry and Mines
Country	Iran
Start Date	Jan 01, 2000
End Date	Jun 23, 2026
Duration	9,670 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`67060`

Grant Description

China Eximbank provides $8.5 million buyer’s credit loan for Iran's Bank of Industry and Mine to produce sodium carbonate used in glass manufacturing In January 2000, China Eximbank issued a $8.5 million buyer’s credit loan to Iran’s Bank of Industry and Mine — an Iranian government-owned bank — for the production of sodium carbonate used in glass manufacturing.

📋 Loan / Grant Terms

💰 Loan Amountare unknown

However, it is known that the loan fully disbursed.

Iran subsequently imported $8 million worth of sodium carbonate from China, but once the sodium carbonate was imported, Iran became self-sufficient in production.

📋 Staff Comments

The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.
According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 4.5756-years in 2000. AidData estimates the grace period of the China Eximbank loan to Iran’s Bank of Industry and Mine by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0 3. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 12.0664-years in 2000. AidData estimates the maturity of the China Eximbank loan to Iran’s Bank of Industry and Mine by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 7.3739% in 2000. AidData estimates the interest rate of the China Eximbank loan to Iran’s Bank of Industry and Mine by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0

📚 Sources & References

China and Iran: Ancient Partners in a Post-Imperial World
China's Overseas Development Finance 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.