The Asian Development Bank (ADB) has approved a multi-billion-yuan loan to Kazakhstan, but the decision was not unanimous. The U.S. voted against the loan.
The board of directors approved a 3.41 billion yuan (about $500 million) loan to Kazakhstan to finance the second phase of the fiscal governance and financial sector reform program.
At the same time, the U.S. voted against the decision, according to the board meeting minutes.
According to the document, the loan will have a 15-year term, including a three-year grace period. The interest rate will be determined under ADB’s Flexible Loan Product.
The published materials do not disclose why the U.S. opposed the loan to Kazakhstan.
According to the ADB, its largest shareholders are the U.S. and Japan, each with a 15.6% stake. China holds a 6.4% stake.
Despite the U.S. position, the board approved financing for Kazakhstan’s reform program.
Notably, the loan amount almost matches the size of Kazakhstan’s inaugural panda bond issuance, which the Finance Ministry placed on the Chinese stock market in late May. The issuance totaled 3.4 billion yuan, with a three-year maturity and a coupon rate of 1.9% per annum.
