Because the credit ratings of international financial organizations and foreign government agencies are generally high, the loan interest rates they can provide are also very low, but the general conditions are somewhat harsh and the things they buy are limited.
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I. Loans from foreign governments
Foreign government loans refer to preferential loans provided by one government to another government, which have a certain gift nature. It has the nature of intergovernmental development assistance or partial donation, and is also called bilateral loan in international statistics. Together with multilateral loans, it constitutes official credit. Its sources of funds are generally divided into two parts: soft loans and export credit. Most soft loans are funds in the government budget; Export credit is part of credit financial funds. Bilateral government loan is a credit relationship between governments. Government agencies or government departments of the two countries come forward to negotiate and sign loan agreements to determine foreign currency debts with contractual repayment obligations.
Two, the characteristics of foreign government loans are:
1, sovereign foreign debt.
Foreign government loan is a kind of foreign debt at first, and it is a kind of debt borrowed by our government. Except for the part confirmed by the National Development and Reform Commission and the Ministry of Finance and returned by the state with the approval of the State Council, the rest is repaid by the project owner, and most of it is guaranteed by local finance.
2. Preferential loan terms
Generally speaking, the donation part of foreign government loans exceeds 35%, and the highest can reach 80%. The interest rate of loans is generally 0.2%-3%, and personal loans are interest-free. The repayment period of a loan is usually between 10-40 years, and the grace period is 2- 15 years. This is a loan with more favorable conditions in China's foreign loan at present.
3. Restricted procurement
The government loans of most countries (except Kuwait) account for 65,438+05%-50% of the purchases of third countries, that is, 50%-85% of the total loans are used to purchase the equipment and technology of the lending countries. Under normal circumstances, you can't choose the loan currency freely, and the exchange rate risk is great.
4. Investment restrictions
The total amount of foreign government loans is large and the use time is long, which facilitates the unified planning, arrangement and centralized use of the country according to the needs of economic development, and can maximize its economies of scale. Foreign government loans are mainly used for government-led projects, with emphasis on infrastructure, social development and environmental protection.