Definition
The borrower applies through Huaxia Bank for long-term favorable loan extended by the foreign government to China.

Service Category
According to Ministry of Finance, foreign government sub-loans fall into three categories:
*Category 1: Projects that have the government bodies approved as the borrower and agree to repay the loan - finance department/division of the provinces, autonomous regions, municipalities directly under the Central Government, and cities designated in the state plan, or the departments of the Central Government.
*Category 2: Projects that have the project company acts as the domestic borrower and agree to repay the loan, whereas the finance department of the provincial agreement agree to provide repayment guarantee.
*Category 3: Projects that have the project company acts as the domestic borrower and agree to repay the loan, whereas the on-lending bank is the ultimate party for repayment.

Applicable Clients
Body corporate with independent license, or non-body corporate institutions authorized by the body corporate, that are legally registered in China and granted with loans from World Bank, Asian Development Bank or foreign government.

Service Flow 
1. Borrower applies through Huaxia Bank for project already granted with loans initiated by the State authorities and approved by foreign government
2. Huaxia Bank checks, assesses and reviews the project.
3. Huaxia Bank signs with the customer the sub-loan agreement and proceeds; Huaxia Bank shall monitor through the entire project implementation.
4. The borrower duly repays the principal and interest until the loan principal, interest, and the expenses are repaid in full.

Price
Sub-loan fee is based on loan balance. Among which:
*For category 1 project: 0.30% when the balance is below USD 10 million; 0.25% when the balance is between USD 10 million ~ 50 million; 0.20% when the balance is above USD 50 million.
*For category 2 project: 0.35% when the balance is below USD 10 million; 0.30% when the balance is between USD 10 million ~ 50 million; 0.25% when the balance is above USD 50 million.
*The fee is capped at 2% for category 3 project.