PLEDGE OF EDCF LOAN
1. Name of the Project:
◦ ____________________________
2. Borrower:
◦ ____________________________
3. Project Executing Agency:
◦ ____________________________
4. Type of Loan:
◦ ____________________________
5. Loan Amount
◦ An amount in Korean Won not exceeding the equivalent of ________ US dollar
($_________)
6. Uses of the Loan
◦ ____________________________
7. Terms of the Loan
◦ Interest Rate : ____________ percent (____%) per annum
[When the borrower makes a procurement contract with Korean Small and Medium
Enterprises (SMEs) or Medium-Large Companies, preferential interest rates shall apply to
the loan covering civil works and procurement of equipment and facilities as follows:
(i) In case one or more Korean SMEs (including a consortium or joint venture (JV) by
Korean SMEs) enter into the contract, zero percent (0%) interest rate shall apply.
(ii) In case one or more Korean Medium-Large Companies (including a consortium or
joint venture (JV) by Korean Medium-Large Companies) enter into the contract, [fifty
percent (50%) of the current interest rate shall apply]1.
1
If the recipient country is a Least Developed Country classified by the UN, no interest shall accrue.
(iii) In case the consortium or joint venture (JV) in which Korean SMEs and/or Medium-
Large Companies occupy fifty percent (50%) or above of the share while one or more
SMEs take at least twenty percent (20%) of the share enter into a contract, [fifty
percent (50%) of the current interest rate shall apply]1.]2
[No interest shall accrue on the loan covering the consulting services provided by Korean
Consultant(s).]2
◦ Maturity : _________ years including the grace period of _____ years
◦ Method of Repayment : Semi-annual installments after the grace period
◦ Interest Payment : Every six (6) months in arrears on outstanding balances
◦ Overdue Charge : Two percent (2.0%) per annum above the Interest Rate
◦ Service Charge : One-Tenth of One percent (0.1%) of the amount of letter of commitment
or the amount of each disbursement (Service Charge will be included in the total Loan
amount.)
8. Loan Denomination Currency
◦ Korean Won
9. Procurement and Employment of Consultant
◦ Eligible Source Countries
- Foreign currency portion : The eligible source country for procurement of goods and
services including consulting services shall be the Republic of Korea.
* Procurement from countries other than eligible source countries, if any, shall be set out
in the Loan Agreement
- Local currency portion : The eligible source country for procurement of goods and
services including consulting services shall be ______________________
◦ Method of Procurement : Competitive Bidding among Korean suppliers
◦ Method of Employment of Consultant : Limited Competitive Bidding among Korean
consulting firms
1
If the recipient country is a Least Developed Country classified by the UN, no interest shall accrue.
2
Delete if not applicable
◦ Procurement Contract or Consulting Contract : To be concluded within Eighteen (18)
months after the effective date of the Loan Agreement
10. Loan Disbursement
◦ Disbursement Period : Within __________ (____) months from the effective date of the
Loan Agreement or such other period which the Borrower and the Export-Import Bank of
Korea shall agree upon.
◦ Disbursement Procedure : Commitment procedure and/or Direct Payment procedure
