China Eximbank provides $514.9 million buyer's credit loan for Equipment Acquisition Project

📋 Staff Comments

1. The face value of the loan is identified by the Bank Al-Maghrib (the central bank of the Kingdom of Morocco) and the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/scl/fi/xmhkg6e64kxk8c7jtjrxy/DRS-Official-Commitments-from-China-Through-2021.xlsx?rlkey=b4k8u2mg72dd65do8bx5ena53&dl=0 and https://www.bkam.ma/content/download/344785/2923781/BT116_juin.pdf and https://www.dropbox.com/s/66eoeih2gqw1np4/BT116_juin%20%281%29.pdf?dl=02. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Morocco was 16.75-years in 2008. AidData estimates the maturity of the China Eximbank loan that supported the Government of Morocco by using this figure. See https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 3. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Morocco was 4.25-years in 2008. AidData estimates the grace period of the China Eximbank loan that supported the Government of Morocco by using this figure. See https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Morocco was 4.9% in 2008. AidData estimates the interest rate of the China Eximbank loan that supported the Government of Morocco by using this figure. See https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=05. The French project title is l’acquisition d’équipements.
2. This loan is not included in the SAIS-CARI database of Chinese loan commitments that was released in 2020 and re-released in 2021. Nor is it included in the China's Overseas Development Finance Database published by Boston University's GDP Center.

📚 Sources & References

• DRS Official Commitments from China Through 2021
• IDS_Average interest on new external debt commitments
• IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments
• BULLETIN TRIMESTRIEL 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.