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 Position :  Home >>   Corporate Banking>> Financing Services>> Re-lending of Foreign Government Loans  


Transfer Of Foreign Government Loans


Re-lending of foreign government loans refers to the Finance Ministry-approved re-lending of foreign government loans for the Chinese government, undertaken by BOCOM for the benefit of domestic customers and projects in China in order to help the latter bring in advanced technology, equipment and services.

Salient features

(1)   Projects utilizing foreign governmental loans can obtain as much as 100% financing of its trade volume;

(2)   Relatively longer loan periods with extremely favorable conditions, to effectively avert extreme pressure facing the customer to pay back the loan during the project period. .

Maturity term and interest rate

(1)   Maturity term of foreign governmental loans is generally over five years, with the maximum of 40 years.

(2)   Foreign government loans are generally interest-free or charged with low interest.

Application conditions

(1)   Fulfill basic conditions for BOCOM loan application;

(2)   Project has been approved by the National Development and Reform Commission and incorporated into the Ministry of Finance financing arrangements via foreign governmental loans.

Application procedure

(1)   Borrower provides BOCOM with essential information about loan applicant, together with project feasibility report and approval documents;

(2)   Upon its review and approval, BOCOM accedes to loan applicant’s request for a letter of intent of re-lending for submission to the Ministry of Finance;

(3)   Loan applicant submits to BOCOM a project feasibility report, a project proposal document and approval documents as well as SDPC-issued approval for utilization of foreign loan as well as approval of a similar nature from the Ministry of Finance; as well as other documents including commercial contracts in Chinese and English, with effective implementation of guarantee procedures;

(4)   BOCOM checks on the integrity, legality, authenticity of the above-mentioned documents, subsequent to which foreign loans are arranged;

(5)   BOCOM signs a financial agreement with the foreign loan-issuing institution and signs a loan transfer agreement with the loan applicant.