China seeks guarantees before loaning $6 billion for Pakistan rail project hindustantimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from hindustantimes.com Daily Mail and Mail on Sunday newspapers.
China seeks additional guarantees for $6b new loan
Proposes a mix of commercial and concessional loan against Islamabad’s desire to secure cheapest lending
File photo
ISLAMABAD:
China has sought additional guarantees before sanctioning $6 billion loan for Main Line-1 (ML-1) project due to weakening financial position of Pakistan and also proposed a mix of commercial and concessional loan against Islamabad’s desire to secure the cheapest lending.
The issue of additional guarantees was raised during the third joint ML-1 financing committee meeting, held ten days ago, official documents said.
However, a senior Pakistani official involved in negotiations said that China did raise the additional guarantees issue during meeting but it did not make it part of the draft of the minutes shared with Pakistan.
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G-20 provides Pakistan with $526 million debt relief under the G-20 debt relief initiative
>Pakistan has signed another agreement with three more members of the G-20 to provide the country with $526 million in debt rescheduling under the G-20 debt relief initiative. The agreement was signed with France, Switzerland, and China.
According to the agreement, Pakistan is allowed to make delayed payments worth $170 million, $9 million, and $347 million to France, Switzerland, and China respectively. The payments were due in the May-December 2020 period. Pakistan has till now received debt relief worth $950 million from various creditors in the G-20 and is actively in talks with a total of 21 creditors for total debt relief of $1.7 billion.
Pakistan gets $526 million G-20 debt relief
Saudi Arabia has not yet signed $716 million relief agreement
Loan. PHOTO: REUTERS
ISLAMABAD:
Pakistan on Monday signed $526 million worth debt rescheduling agreements with three more members of the richest G-20 club, taking the overall benefit to below $1 billion.
The debt rescheduling agreements were signed with France, Switzerland and China by the Economic Affair Division, according to a handout issued by the Economic Affairs Ministry.
The agreement would result in delaying the repayments of $170 million to France, $9 million to Switzerland and $347 million to China. Pakistan is among the 76 poorest countries, mainly African nations that decided to avail the G-20 debt relief initiative.