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China’s SAFE provides $500 million deposit loan to shore up Pakistan's foreign exchange reserves in January 2016 (Linked to Record ID#73341)
| Funder | China State Administration of Foreign Exchange (SAFE) |
|---|---|
| Recipient Organization | State Bank of Pakistan (SBP) |
| Country | Pakistan |
| Start Date | Jan 23, 2016 |
| End Date | Feb 20, 2029 |
| Duration | 4,777 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 97839 |
Grant Description
China’s SAFE provides $500 million deposit loan to shore up Pakistan's foreign exchange reserves in January 2016 On January 23, 2009, China’s State Administration of Foreign Exchange (SAFE) provided a $500 million deposit loan to State Bank of Pakistan (SBP) in order to shore up the country’s foreign exchange reserves (and address the country’s weak current account situation).
The loan was repayable semi-annually and it was scheduled to mature on January 23, 2013.
On January 23, 2013, the $500 million SAFE deposit loan from 2009 was repaid and reissued (i.e. 'rolled over') with a maturity date of January 23, 2014.
Then, on January 23, 2014, the $500 million SAFE deposit loan from 2013 was repaid and reissued (i.e. 'rolled over') with a maturity date of January 23, 2015.
One year later, on January 23, 2015, the $500 million SAFE deposit loan from 2014 was repaid and reissued (i.e. 'rolled over') with a maturity date of January 23, 2016.
Then, on January 23, 2016, the $500 million SAFE deposit loan from 2015 was repaid and reissued (i.e. 'rolled over') with a maturity date of January 23, 2017.
Rather than rollover for yet another year, the Government of Pakistan decided to repay the loan in 2017 due to the country’s strong macroeconomic performance and stable foreign exchange reserves position.
Pakistan’s Finance Minister directed the SBP to make payment of $500 million to China’s State Administration of Foreign Exchange (SAFE) on January 23, 2017.
The then-Prime Minister Muhammad Nawaz Sharif expressed his deep appreciation to the Chinese Government for the critical support it provided through the SAFE deposit, which had stabilized the country’s current account since 2009.
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.
- 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
- Did Pakistan borrow $500 million from ICBC to repay old Chinese loan?
- SBP directed to repay $500 million loan to Chinese SAFE
- SBP directed to repay $500m loan to SAFE, 8.1 Pakistan’s Debt and Liabilities-Summary
- Pakistan’s Debt and Liabilities-Summary
- State Bank of Pakistan
- Revision Study on External Debt Statistics, 03 September 2012, 5.1 Pakistan's Debt and Liabilities-Summary, 8.1 Pakistan’s Debt and Liabilities-Summary
- Settlement: Finance minister directs SBP to repay Chinese loan, 5.1 Pakistan's Debt and Liabilities-Summary 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
State Bank of Pakistan (SBP)
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