July-November 2017-2018: $1.092 billion commercial loans procured from foreign banks

The country procured $1.092 billion commercial loans from foreign banks in current fiscal year (July-November) 2017-18, surpassing the budgeted estimates of $1 billion for the entire year. The total external assistance for July-November 2017 amounted to $2.877 billion (including $1.092 billion commercial loans), revealed the Economic Affairs Division (EAD). The government has so far signed short-term commercial loan agreements of $1.417 billion in the current fiscal year 2017-18 with different foreign banks of which $1.092 billion have been materialized.
The government signed a new agreement for procuring $200 million commercial loans from Standard Chartered Bank (SCB) London on October 31, 2017 and has procured $70.37 million so far. The government procured $500 million commercial loans from Industrial and Commercial Bank of China Limited (ICBC) in October. Furthermore, $50 million were procured from the Credit Suisse-led consortium of banks, bringing the total to $255 million from the consortium. The consortium consists of Credit Suisse AG, United Bank Limited and Allied Bank Limited. The country procured $267 million commercial loans from Citibank during the current fiscal year for budgetary support.
According to the Finance Ministry, the government procured commercial loans from Citibank at the interest rate of 3 month LIBOR + 2.7 percent, from Credit Suisse at 3 month LIBOR + 2 percent and from ICBC at 3 month LIBOR +3.25 percent. Sources revealed that the government is in negotiations with some other foreign banks and expects to sign more agreements in coming months for procuring more commercial loans for budgetary support.
The government budgeted $2.05 billion for 2016-17 but by the end of the year had borrowed $4.367 billion from foreign commercial banks. The government has budgeted foreign assistance of $8.094 billion for 2017-18 including $7.692 billion loans and $401.78 million grants. The country received a total of $396million of foreign assistance in November, revealed EAD.
China disbursed $455.25 million in current fiscal year (July-November 2017-18) against the budgeted $1.595 billion for the entire year. China released $38.04 million in November and that were for the Havelian-Thakot motorway under the China-Pakistan Economic Corridor (CPEC) framework.
Asian Development Bank (ADB) has so far disbursed $221.88 million in the current fiscal year including $61.34 million in November against the budgeted estimates of $1.221 billion, International Bank for Reconstruction and Development (IBRD), $69.88 million against the estimated $60.65 million, IDB(S-Term), $660.31 million including $175.96 million in November against the estimated $1.550 billion, Asian Infrastructure Investment Bank (AIIB), $7.86million, International Development Association (IDA), $106.65 million against $975.27 million, Islamic Development Bank (IDB), $55.25 million, Japan, $33.17 million, Saudi Arabia, $22.50 million, UK released grant of $89.44 million, and USA released $25.96 million in the current fiscal year against the budgeted estimates of $117.56 million.
The government has received no assistance from EU, Italy, Korea, Norway, and UNDP during the first five months of the current fiscal year (2017-18).