Two Concessional Loan:
Two Concessional Loan means two kinds of concessional loans, such as Chine Government Concessional Loan and Preferential Export Buyer‘s Credit Loan. Chine Government Concessional Loan (hereinafter referred to as the “concessional loans”) refers to the medium and long-term, low interest rate credit extended by China Eximbank under the designation of the Chine Government with the nature of official assistance. Preferential Export Buyer‘s Credit Loan(hereinafter referred to as the “preferential buyer” ) refers to the medium and long-term credit with preferential terms and conditions, aiming to promote China’pianoss economic and trade cooperation with other key countries and regions. Approved by the state council, it is a particular loan.
1.The common characteristic:全面搜寻圣诞狗狗
Objective: To promote the economic and social development of the borrowing countries and improve living standards of people; to boost the China’s economic cooperation with the borrowing countries.
Loan purpo: Fund manufacturing projects, infrastructure construction project and social welfare projects in the borrowing countries, which can generate promising economic returns or good social benefits; Finance the procurement of Chine mechanical, electronic products, complete ts of equipments, technology and rvices and other goods by the borrowing countries.
Prospective borrower: The borrower of concessional loan is normally the government of the borrowing country reprented by Ministry of Finance. Under special circumstances, the borrower could be a financial institution or other agencies designated by the government of the borrowing country and acceptable to China Eximbank. In such ca, Ministry of Finance of the borrowing country is required to provide repayment guarantee acceptable to the bank. Emphasize the government background.
Supported area: There is long-term 外贸英语口语900句promoting for economic and social development of the borrowing country; There has a good economic benefit and financial income; There could strengthen the Economic hematopoietic area of borrowing country, such as infrastr
ucture and manufacturing --- energy resources development, transportation, communication and so on.
2. The two main contents’ comparison
| heel什么意思Concessional Loans | steal away Preferential Buyer |
Government authorities | The Ministry of Commerce(foreign aid); administrative cretary of the Ministry of Finance | The Ministry of Commerce (Department of Cooperation); The Ministry of Finance (Financial Department) |
Sum | no less than RMB20 million | no less than USD2 million |
Currency | RMB | USD |
Financing percentage | maximum 100% | need a certain proportion of preparations by themlves （generally is 15%） |
Borrower | Government of the borrowing country( reprented by the ministry of finance） | Government of the borrowing country( reprented by the ministry of finance） |
Insurance | Not force（now mainly u the project’s financial income）for repayment or act as a supplement for financial repayment) | Not force（now mainly u the project’s financial income）for repayment or act as a supplement for financial repayment) |
Interest rate | Perform the determining interest rates in inter-governmental concessional loans framework agreement. Fixed rate. | Perform the loan interest rates approved by Chine Government. Generally is fixed rate. |
Term | Loan term is made of grace period （no more than 1/3 loan term，including using loan period）and repayment period, loan term is 20 years. During grace period，borrower pays interest only and does not repay the principal ； After entering the repayment period, borrower repays interests and principal as stipulated in the loan agreement. | Loan term is made of grace period （no more than 1/3 loan term，including using loan period）and repayment period, loan term is 20 years. During grace period，borrower pays interest only and does not repay the principal ； After entering the repayment period, borrower repays interests and principal as stipulated in the loan agreement. |
Interest payment | Interest is calculated and paid mi-annually , interest payment dates arearticles fixed on March, 21st and Sep. 21st every year (the last interest payment date is the due date of loan) | Interest is calculated and paid mi-annually , interest payment dates陌路人英文版 are fixed on Jan. 21st and July 21st every year (the last interest payment date is the due date of loan) |
Repayment of principal | An equal repayment once mi-annually in repayment period（the number of repayment is the year of repayment term X2）,Repayment dates are fixed on March, 21st and Sep. 21st every year (the last repayment date is the due date of loan ) | An equal repayment once mi-annually in repayment period（the number of repayment is the year of repayment term X2）四六级成绩查询入口身份证号码,Repayment dates are fixed on Jan. 21st and July 21st every year (the last repayment date is the due date of loan ) |
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3.Loan &Financing Requirements
1)The project shall be approved by both the Chine Government and the Government of the borrowing country;
2)The borrowing country shall have sound diplomatic relations with Chine Government, and shall be politically stable and economically sound, with debt rvicing capacity and reliable contract-performance record;
3)The project shall be technically feasible;
4)popcartThe project is able to yield sound economic returns and social benefits;
5)Chine Companies shall be lected as the project contractor. And for procurement projects, equipment supply shall come form a Chine exporter in principle;
6)In project procurement or introduction, priority shall be given to equipment, materials, technology or rvices from China. In principle, no less than 15% of engineering contract
ing projects and no less than 50% of total procurement (including the equipment procurement projects and equipment part of engineering contracting projects) shall be made in China.
7)The counterpart funds for the project shall be already in place;
8)Other documents required by the Chine Government and Eximbank.
4.The Esntial Data for Loan Appraisal
1)Proposal (loan application letter) from Government of borrowing country, including project name, introduction, loan application amount, loan period, grace period, interest rate, Chine executive enterpris and the project owner, etc.
2)Recommendation issued by the commercial counlor’s office of the Chine Embassy in the borrowing country;
3)Commercial contract or other types of cooperation agreements signed between the Chi
ne contractor/exporter and the local executing agency of the borrowing country, including reasonable and clear payment terms, Letter of guarantee to open arrangement, quantities, construction period, guarantee period, commence date, time for completion and effective date of the contract, etc.
