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Preferential Facilities(Concessional Loans)

I. Introduction

China Eximbank provides two preferential facilities, namely, government concessional loan and preferential export buyers’ credit. These two facilities are an arrangement made by the Chinese Government to support other developing countries with concessional funding. China Eximbank is the only bank designated by the Chinese Government to implement such facilities.

II. Procedure

1.Government of the borrowing country applies to the Chinese government for loan and submits necessary documents.

2.The Bank collects project information and launches pre-lending investigation.

3. The Bank conducts project evaluation and then submits reports to relevant government authorities.

4. For government concessional loan, based on the framework loan agreement signed between the Chinese government and the government of the borrowing country, the Bank signs project loan agreement with the borrower. For preferential export buyer’s credit, the Bank signs project loan agreement upon approval by relevant government authorities.

5. Disbursements of the loan are done according to the implementation of the project.

6. Post-lending management and repayments are guided by the Bank’s regulations.

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