Foreign government loan features preferential conditions and certain characteristics of donation, which the government of one state provides the government of another state to support the latter's construction in urban infrastructure, environment protection and other non-profit projects.
Brief Introduction：
The on-lending of foreign government loan means that our bank will make on-lending loan of the foreign government loan, which is provided to our government to support the export of the products of the foreign country. The interest rate, amount, tenor and repayment method will be determined by the foreign financial agreement between the lender and the borrower.
Business Types
The first category: The project is checked and approved by financial departments of provincial government level and they agree to take repayment responsibility of the borrower.
The second category: The project company is the borrower and responsible for the repayment of the loan. The financial departments of provincial government level agree to provide repayment guarantee for the project.
The third category: The project company is the borrower and responsible for the repayment of the loan. The on-lending bank will be the final repayment bank of the foreign loan under the project.
Features
Low interest rate and sometimes even interest free;
Relatively long tenor and mainly medium and long term;
International trade background: the loan project is related with commercial contract and the purchase of capital goods, technique or service.
Business Types