口行两优Chinese Government Concessional Loan

1、two concessional loan:two concessional loan means two kinds of concessional loans, such as chinese government concessional loan and preferential export buyers credit loan. chinese government concessional loan (hereinafter referred to as the “concessional loans”) refers to the medium and long-term, l

2、ow interest rate credit extended by china eximbank under the designation of the chinese government with the nature of official assistance. preferential export buyers credit loan(hereinafter referred to as the “preferential buyer” ) refers to the medium and long-term credit with preferential terms an

3、d conditions, aiming to promote chinas economic and trade cooperation with other key countries and regions. approved by the state council, it is a particular loan.1. the common characteristic:objective: to promote the economic and social development of the borrowing countries and improve living stan

4、dards of people; to boost the chinas economic cooperation with the borrowing countries.loan purpose: 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

5、 the procurement of chinese mechanical, electronic products, complete sets of equipments, technology and services and other goods by the borrowing countries.prospective borrower: the borrower of concessional loan is normally the government of the borrowing country represented by ministry of finance.

6、 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 case, ministry of finance of the borrowing country is required to provide repayment guarantee acceptable to th

7、e bank. emphasize the government background.supported area: there is long-term 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

8、ucture and manufacturing - energy resources development, transportation, communication and so on.2. the two main contents comparisonconcessional loanspreferential buyergovernment authoritiesthe ministry of commerce(foreign aid); administrative secretary of the ministry of financethe ministry of comm

9、erce (department of cooperation); the ministry of finance (financial department)sumno less than rmb20 millionno less than usd2 millioncurrencyrmbusdfinancing percentagemaximum 100%need a certain proportion of preparations by themselves （generally is 15%）borrowergovernment of the borrowing country( r

10、epresented by the ministry of finance）government of the borrowing country( represented by the ministry of finance）insurancenot force（now mainly use the projects financial income）for repayment or act as a supplement for financial repayment)not force（now mainly use the projects financial income）for re

11、payment or act as a supplement for financial repayment)interest rateperform the determining interest rates in inter-governmental concessional loans framework agreement. fixed rate.perform the loan interest rates approved by chinese government. generally is fixed rate.termloan term is made of grace p

12、eriod （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 agreeme

13、nt.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

14、 stipulated in the loan agreement.interest paymentinterest is calculated and paid semi-annually , interest payment dates are 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 semi-annually , interest payment dates ar

15、e fixed on jan. 21st and july 21st every year (the last interest payment date is the due date of loan)repayment of principalan equal repayment once semi-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

16、 year (the last repayment date is the due date of loan )an equal repayment once semi-annually in repayment period（the number of repayment is the year of repayment term x2）,repayment dates are fixed on jan. 21st and july 21st every year (the last repayment date is the due date of loan )3. loan &f

17、inancing requirements1) the project shall be approved by both the chinese government and the government of the borrowing country;2) the borrowing country shall have sound diplomatic relations with chinese government, and shall be politically stable and economically sound, with debt servicing capacit

18、y and reliable contract-performance record;3) the project shall be technically feasible;4) the project is able to yield sound economic returns and social benefits;5) chinese companies shall be selected as the project contractor. and for procurement projects, equipment supply shall come form a chines

19、e exporter in principle;6) in project procurement or introduction, priority shall be given to equipment, materials, technology or services from china. in principle, no less than 15% of engineering contracting projects and no less than 50% of total procurement (including the equipment procurement pro

20、jects 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 chinese government and eximbank.4. the essential data for loan appraisal1) proposal (loan application letter) fr

21、om government of borrowing country, including project name, introduction, loan application amount, loan period, grace period, interest rate, chinese executive enterprises and the project owner, etc.2) recommendation issued by the commercial counselors office of the chinese embassy in the borrowing c

22、ountry;3) commercial contract or other types of cooperation agreements signed between the chinese 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, guara

23、ntee period, commence date, time for completion and effective date of the contract, etc.4) project proposal or feasibility study report approved by the government of borrowing country specifying the essential significance of the project (target and objective), content and scope of the project, inves

24、tment budget, and other information including technical and economical feasibility and social benefits;5) environmental assessment report approved by the government of borrowing country and environmental assessment approval documents of the project, etc.5. operation procedures:concessional loan:1) t

25、he project shall be approved by both the chinese government and the government of the borrowing country; 2) the borrowing country applies for loan application to eximbank and submits the necessary materials of the project appraisal; 3) eximbank will evaluate the project; 4) after eximbank finished,

26、the result will be reported to the ministry of commerce; 5) ministry of commerce will lead to finish the internal approval process of chinese government; 6) chinese government publishes the frame agreement and signed after the borrowing country approved; 7) the frame agreement will file to eximbank

27、for record, and eximbank draws up loan agreement; 8) once loan agreement has been confirmed by the borrower, eximbank will sign the contract; 9) the borrower submits the effective documents according to the effective conditions prescribed by the loan agreement. the loan agreement will be took effect

28、 after approved by eximbank; 10) the borrower submits the loan documents for the first time according to the loan for the first time conditions prescribed by the loan agreement. the loan for the first time will be issued after approved by eximbank. eximbank must supervise the fund flow of the loan f

29、or the first time. 11) the borrower submits the loan documents according to the loan conditions (except the loan for the first time) prescribed by the loan agreement and commercial contract. the loan will be issued deal by deal after approved by eximbank; 12) the borrower repays the interests and pr

30、incipal according to the loan agreement, if not, eximbank will take steps to stop loan.中国政府（商务部）the chinese government (ministry of commerce)政府优惠贷款基本流程basic procedure of government concessional loan： 3签署框架协议2报告评估结果signed a framework agreement report results1贷款申请loan application中国进出口银行（贷款人）the export

31、 import bank chinese (lender)借款国政府（借款人）the borrowing government (the borrower) 4签订项目贷款协议project loan agreement signed 7发出提款申请，并附单据；报告项目进程6 报告进程提交单据a withdrawal application, and the attached documents; report project progressreport process,submit the documents 8拨付贷款disburseme

32、nt on loan 9还本、付息付费repayment of principal and interest payment 中方执行机构（承包商）（出口商）the actuator (contractor) (exporter)外方执行机构（业主）（进口商）the foreign actuators (the owner) (importer)商务合同business contract5根据合同提交单据，要求付款the submitted documents, according to the contract for paymentpreferential buyer:1) the pro

33、ject shall be approved by both the chinese government and the government of the borrowing country;2) the borrowing country applies for loan application to eximbank and submits the necessary materials of the project appraisal; 3) eximbank will evaluate the project; 4) after eximbank finished, the res

34、ult will be reported to the ministry of commerce; 5) ministry of commerce will lead to finish the internal approval process of chinese government;6) eximbank draws up and issued the loan agreement after the project approved by chinese government; 7) once loan agreement has been confirmed by the borr

35、owing country, eximbank will sign the contract; 8) the borrower submits the effective documents according to the effective conditions prescribed by the loan agreement. the loan agreement will be took effect after approved by eximbank; 9) the borrower submits the loan documents for the first time according to the loan for the first time conditions prescribed by the loan agreement. the loan for the fir