China will provide preferential export credits to Tajik enterprises for importing Chinese goods. The loans will be provided for the period of 3-5 years and the annual interest on them will not exceed 12 percent.
Amonatbonk (Tajikistan’s savings bank) and the China Development Bank (CDB) concluded the preliminary agreement at the beginning of the year.
“The final document will be signed in the near future,” an official source at Amonatbonk told Asia-Plus in an interview.
According to him, the loans will be provided for the period of 3-5 years under the annual interest of 12 percent.
“The loans are intended for purchase of Chinese goods, first of all equipment and new technologies,” the source added.
An export credit is an insurance, guarantee or financing arrangement which enables a foreign buyer of exported good and/or services to defer payment over a period of time. Export credits are generally divided into short-term, medium-term (usually two to five years repayment) and long-term (usually over five years).
Amonatbonk is the only state-owned bank in Tajikistan. It is one of the oldest in Tajikistan (established in 1925) and one of the largest based upon various criteria – including the number of branches and the number of served clients. The institution is unique in its orientation towards implementing social, pension and other state programs. Amonatbonk has 5 regional centers, 69 branches and nearly 500 agencies. This gives the institution a presence in the most remote mountainous parts of the country.
The China Development Bank (CDB) is a financial institution in the People's Republic of China (PRC) led by a cabinet minister level Governor, under the direct jurisdiction of the State Council. As one of three policy banks of the PRC, it is primarily responsible for raising funding for large infrastructure projects, including most of the funding for the Three Gorges Dam and Shanghai Pudong International Airport. Established by the Policy Banks Law of 1994, the bank is described as the engine that powers the national government’s economic development policies.
