Tied Loan

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Tied Loan

A loan that a government makes to a foreign borrower in exchange for the promise that the borrower will use the loan to purchase goods from the lender's country. A tied loan may be mutually beneficial; for example, it may spur business in the lending country while aiding the borrower's economic development.

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Bow-Tie Loan

References in periodicals archive ?

With regard to the condition that China would supply the contractors for the projects it would fund, Gatchalian said this was normal with 'tied loans.' Other countries impose the same condition, he said.

Confidentiality clause raises more questions about China deal

Offered loans from China bear a 2-percent interest rate for concessional or tied loans with a maturity period of 20 years, while the preferential buyer's credit loan has an interest rate of 3 percent with the same maturity period.

Officials rely on prudence in borrowing for 'Build, Build, Build'

Indeed, African countries seem to be stuck between a rock and a hard place; unable to access favourable loans from others, and tied loans from China.

Are China's Loans To Africa Good or Bad?

With tied loans, the implementing agency is required to procure 30 percent of the project contents - equipment, services or facilities - from Japan.

Special Report: Should we be worried about Chinese loans for infrastructure buildup? (Part 2)

The accusation arises from the IMF's "structural adjustment" programs of the 1980s and 1990s, which tied loans to strict budget regimes, and might have resulted in cuts to health spending.

Report: IMF, World Bank policies may share blame in Ebola crisis

The government has also eased regulations on so-called tied loans, which developing nations can only receive if they make related orders from South Korean companies.

Korea to double loans to developing nations

The rate cuts, eyed as part of efforts to ease conditions for such low-interest loans extended as official development assistance (ODA), will include a cut in tied loans to 0.4% from the current 0.75%, the officials said.

Kyodo economic news summary -7-

The results of the survey may lead to growing calls among politicians for greater use of tied loans, in which the Japanese government offers yen loans on condition that projects be undertaken by Japanese firms.

Most of Japan's yen-loan projects in China won by local firms

Pettifor also claimed Japan's policy of giving tied loans -- which call on the debtor country to spend the borrowed money on goods from the creditor country -- was serving poor countries badly.

Japan should do more for poor countries: campaigner

foreign assistance, at least $22 billion will be spent on "tied loans" and grants, spent right here in the U.S.

It's time to give U.S. foreign aid to those who need it most

Ralph Recto has warned against 'tied loans' from countries like China where foreigners take over the jobs of Filipinos.

Why tied aid is a disaster

When it comes to concessional tied loans from China, these have an interest rate of 2 percent with a maturity of 20 years and a grace period of five years.