Completed Development AidData Chinese Aid

China’s SAFE provides $2 billion deposit loan to shore up Pakistan’s foreign exchange reserves in March 2019 (Linked to Record ID#73343)

$2M USD

Funder	China State Administration of Foreign Exchange (SAFE)
Recipient Organization	State Bank of Pakistan (SBP)
Country	Pakistan
Start Date	Mar 23, 2019
End Date	Oct 24, 2033
Duration	5,329 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`92087`

Grant Description

China’s SAFE provides $2 billion deposit loan to shore up Pakistan’s foreign exchange reserves in March 2019 On March 23, 2018, the People's Bank of China signed an agreement with the State Bank of Pakistan to provide a $2 billion loan — via China’s State Administration of Foreign Exchange (SAFE) — to shore up the country’s foreign exchange reserves (as captured via Record ID#73343).

📋 Loan / Grant Terms

💰 Loan Amountcarried the following borrowing terms: a 1-year maturity

📅 Maturity1 year

⏳ Grace Period1 year

The loan fully disbursed.

Then, on March 23, 2019, the $2 billion SAFE deposit loan from 2018 was repaid and reissued (i.e. 'rolled over') with a maturity date of March 23, 2020 (as captured via Record ID#92087).

One year later, on March 23, 2020, the $2 billion SAFE deposit loan from 2019 was repaid and reissued (i.e. 'rolled over') with a maturity date of March 23, 2021.

Then, on March 23, 2021, the $2 billion SAFE deposit loan from 2020 was repaid and reissued (i.e. 'rolled over) with a maturity date of March 23, 2022.

Then, on March 23, 2022, the $2 billion SAFE deposit loan from 2021 was repaid and reissued (i.e. 'rolled over'') with a maturity date of March 23, 2023.

Then, on March 23, 2023, the $2 billion SAFE deposit loan from 2022 was repaid and reissued (i.e. 'rolled over') with a maturity date of March 23, 2024.

📋 Staff Comments

For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
Some sources suggest that China's SAFE issued the original (2018) $2 billion loan on July 23, 2018 rather than March 23, 2018. This issue warrants further investigation.
Until 2018, all SAFE loans were managed by the State Bank of Pakistan (SBP). However, during the 2018-2019 fiscal year, the loans were reclassified and are now under the aegis of the Economic Affairs Division (EAD).

📚 Sources & References

Statistical Supplement: Pakistan Economic Survey
SENATE SECRETARIAT ————— “QUESTIONS FOR ORAL ANSWERS AND THEIR REPLIES” to be asked at a sitting of the Senate to be held on Friday, the 17th January, 2020, (295th Session) SENATE SECRETARIAT 'QUESTIONS FOR ORAL ANSWERS AND THEIR REPLIES' to be asked at a sitting of the Senate to be held on Friday, the 17th January, 2020
Statistical Supplement Pakistan Economic Survey 2020-2021 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.