$8 million cooperation loan from China

Lebanon and China have agreed to foster bilateral technical and economic cooperation.

The signing of an $8 billion loan agreement took place today, between the Council for Development and Reconstruction (CDR) and China’s ambassador to Lebanon, HE Jiang Jiang.

China will provide the loan to Lebanon at zero interest rate, for of the next ten years. The agreement stipulates that ten percent of the loan amount is to be paid, yearly, to China through delivery of Lebanese goods.

The Government specified in July 2014 that the Investment Development Authority of Lebanon (IDAL) is to be in charge of the delivery of Lebanese goods each year, following the Government’s approval. IDAL will also negotiate and sign an agreement with the Chinese party, to define the mechanism and implementation of the loan repayment process.

Nabil El-Jisr, President of CDR said: “The Chinese government agreed to the loan agreement in addition to a donation of more than $3 million.” He said: “We have begun procedures to get the Government to the loan and donation.”

Ambassador Jiang said: “All these financial amounts will be used to implement technical and economic projects to be agreed upon by the Lebanese and Chinese governments.” This needs another agreement between governments of both countries.