dude it’s 1.5 billion over 12 years which comes about to be 8% APR/year. It’s a little on the high end scale but pretty standard
Read Again:dude it’s 1.5 billion over 12 years which comes about to be 8% APR/year. It’s a little on the high end scale but pretty standard
Western banks and world bank would sanction the loan at 4-5%. And given the High degree of risk of non repayment from Pakistan the lender would charge a higher APR to recoup as much money as it can
Typical Nawaz Ganja supporter. First give him credit for motorways, nukes, cpec, orange train etc etc. And when things go wrong, blame it on the selectors.CPEC was establishment project, Nawaz was front men. Blame as usual lies with establishment/army. Hell I remember there was plan to build dozen imported coal power plants 6600MW in coast of Balochistan. Thankfully that didnt go anywhere otherwise imagine capacity payments now.
Good. Thank you, man.What is IMF - is it Iron Bro Monetary fund?
Jokes apart, World Bank suspended debt servicing for Pakistan saving her 3.4 billion $ and IMF 1.4 billion $ in 2020.
Since it took effect on May 1, 2020, the Debt Service Suspension Initiative (DSSI) has delivered about $5 billion in relief to more than 40 eligible countries.www.worldbank.org
Read it again more closely it said the due payment in the 3 years is the $3 billion principal and 1.5 billion dividend. It doesn’t mean that that dividend is against that $3 billion loan i.e 50% ROI. It’s just telling you what’s due. That dividend is from another loan or series of loans or a tranche paymentRead Again:
In addition to the $3 billion principal payments, the dividend payments also stand at $1.5 billion during the next three fiscal years.
of course it is. But The other guy was thinking that 1.5 billion is against the $3 billion loan@Mk-313
That dividend is from another loan or series of loans
The dividend would be typically against the equity component of the project funding. It would be a subset of the Return on Equity (ROE) component of the tariff. It is not an additional burden on the exchequer but does result in an outflow of forex and strains the balance of payments position.