Common use of Bank own resource loans Clause in Contracts

Bank own resource loans. 1. The Bank shall: a) contribute, through the resources it manages, to the economic and industrial development of the ACP States on a national and regional basis; and to this end, finance as a priority productive projects and programmes or other investments aimed at promoting the private sector in all economic sectors; b) establish close cooperation links with national and regional development banks and with banking and financial institutions of the ACP States and of the EU; and c) in consultation with the ACP State concerned, adapt the arrangements and procedures for implementing development finance cooperation, as set out in this Agreement, if necessary, to take account of the nature of the projects and programmes and to act in accordance with the objectives of this Agreement, within the framework of the procedures laid down by its statute. 2. Loans from the Bank’s own resources shall be granted under the following terms and conditions: a) the reference rate of interest shall be the rate applied by the Bank for a loan with the same conditions as to currency and the repayment period on the day of signature of the contract or on the date of disbursement; b) however, for countries which are not subject to restrictive borrowing conditions under the HIPC or other internationally agreed debt sustainability frameworks: i) in principle, public sector projects shall be eligible for an interest rate subsidy of up to 3%; ii) private sector projects falling into the categories specified in Article 2 (7)(b) shall be eligible for interest rate subsidies on the terms specified in that provision. The final interest rate shall, in any such case, never be less than 50% of the reference rate. c) the repayment period of loans made by the Bank from its own resources shall be determined on the basis of the economic and financial characteristics of the project. These loans shall normally comprise a grace period fixed by reference to the construction period of the project. 3. For investments financed by the Bank from its own resources in public sector companies, specific project-related guarantees or undertakings may be required from the ACP State concerned.

Bank own resource loans. 1. The Bank shall: (a) contribute, through the resources it manages, to the economic and industrial development of the ACP States on a national and regional basis; and to this end, finance as a priority productive projects and programmes or other investments aimed at promoting the private sector in all economic sectors;; ▼B (b) establish close cooperation links with national and regional development banks and with banking and financial institutions of the ACP States and of the EU; and (c) in consultation with the ACP State concerned, adapt the arrangements and procedures for implementing development finance cooperation, as set out in this Agreement, if necessary, to take account of the nature of the projects and programmes and to act in accordance with the objectives of this Agreement, within the framework of the procedures laid down by its statute. 2. Loans from the Bank’s 's own resources shall be granted under the following terms and conditions: (a) the reference rate of interest shall be the rate applied by the Bank for a loan with the same conditions as to currency and the repayment period on the day of signature of the contract or on the date of disbursement; (b) however, for countries which are not subject to restrictive borrowing conditions under the HIPC or other internationally agreed debt sustainability frameworks: (i) in principle, public sector projects shall be eligible for an interest rate subsidy of up to 33 %; (ii) private sector projects falling into the categories specified in Article 2 (7)(b2(7)(b) shall be eligible for interest rate subsidies on the terms specified in that provision. The final interest rate shall, in any such case, never be less than 5050 % of the reference rate.; (c) the repayment period of loans made by the Bank from its own resources shall be determined on the basis of the economic and financial characteristics of the project. These loans shall normally comprise a grace period fixed by reference to the construction period of the project. 3. For investments financed by the Bank from its own resources in public sector companies, specific project-related guarantees or undertakings may be required from the ACP State concerned.

Bank own resource loans. 1. The Bank shall: (a) contribute, through the resources it manages, to the economic and industrial development of the ACP States on a national and regional basis; and to this end, finance as a priority productive projects and programmes or other investments aimed at promoting the private sector in all economic sectors; (b) establish close cooperation links with national and regional development banks and with banking and financial institutions of the ACP States and of the EU; and (c) in consultation with the ACP State concerned, adapt the arrangements and procedures for implementing development finance cooperation, as set out in this Agreement, if necessary, to take account of the nature of the projects and programmes and to act in accordance with the objectives of this Agreement, within the framework of the procedures laid down by its statute. 2. Loans from the Bank’s 's own resources shall be granted under the following terms and conditions: (a) the reference rate of interest shall be the rate applied by the Bank for a loan with the same conditions as to currency and the repayment period on the day of signature of the contract or on the date of disbursement; (b) however, for countries which are not subject to restrictive borrowing conditions under the HIPC or other internationally agreed debt sustainability frameworks: (i) in principle, public sector projects shall be eligible for an interest rate subsidy of up to 33 %; (ii) private sector projects falling into the categories specified in Article 2 (7)(b2(7)(b) shall be eligible for interest rate subsidies on the terms specified in that provision. The final interest rate shall, in any such case, never be less than 5050 % of the reference rate.; (c) the repayment period of loans made by the Bank from its own resources shall be determined on the basis of the economic and financial characteristics of the project. These loans shall normally comprise a grace period fixed by reference to the construction period of the project. 3. For investments financed by the Bank from its own resources in public sector companies, specific project-related guarantees or undertakings may be required from the ACP State concerned.