Active Development AidData Chinese Aid

CDB provides $1 billion loan to shore up Pakistan’s foreign exchange reserves in FY 2019-2020 (Linked to Record ID#90968)

$1M USD

Funder	China Development Bank (CDB)
Recipient Organization	State Bank of Pakistan (SBP)
Country	Pakistan
Start Date	Jul 01, 2019
End Date	Apr 10, 2030
Duration	3,936 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`92272`

Grant Description

CDB provides $1 billion loan to shore up Pakistan’s foreign exchange reserves in FY 2019-2020 In Fiscal Year 2019-2020, China Development Bank provided a total of $1.7 billion worth of loans to the State Bank of Pakistan to shore up the country’s foreign exchange reserves.

📋 Loan / Grant Terms

📅 Maturity3 years

⏳ Grace Period3 years

It is unclear whether CDB issued two separate loans (a $1 billion loan and a $700 million loan) or a single $1.7 billion loan in two separate tranches.

For the time being, the $700 million contribution is captured via Record ID#90968 while the $1 billion contribution is captured via Record ID#92272.

📋 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.
The precise loan commitment date is unknown. This issue requires further investigation. For the time being, AidData assumed that the loan contracted in Fiscal Year 2019-2020 was contracted in calendar year 2019, and the commitment date is coded as July 1, 2019.
One official source (https://www.dropbox.com/s/3lnbfhvvdkbn67i/1579233392_551.pdf?dl=0) indicates that CDB issued a $700 million balance of payments (BOP) support loan in December 2019 (with an interest rate of 3-month LIBOR plus 3.23% margin and a 3-year maturity). However, another official source (https://www.dropbox.com/s/dj9qtmjm24bhakc/Supplement_2019_20.pdf?dl=0) indicates that CDB issued one or more loans worth $1.7 billion in Fiscal Year 2019-2020 (with an interest rate of 6-month LIBOR plus a 3% margin and a 3-year maturity). This discrepancy may reflect the fact that CDB issued two separate loans (a $1 billion loan and a $700 million loan) or that CDB issued a single $1.7 billion loan in two separate tranches. For the time being, AidData captures the $1.7 billion loan commitment in two separate records. However, this issue warrants further investigation.

📚 Sources & References

2019-2020 Pakistan Economic Survey, 2018-2019 Pakistan Economic Survey: Statistical Supplement
Statistical Supplement to the Pakistan Economic Survey 2019-2020
Satistical Supplement Pakistan Economic Survey 2019-2020
Statistical Supplement: Pakistan Economic Survey, (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 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.