5. The Bank of China pays a capitalized risk share after receiving certified documents; As part of unfunded risk participation, you pay participation fees in accordance with the contract requirements. One of the hot topics on the agenda was the discussion on cooperation within the framework of the NICA megaproject. The parties evaluated the agreement between JINR and the Chinese Ministry of Science and Technology regarding China`s participation in the construction and operation of the NICA complex, which was signed at the opening ceremony of the years. The Chinese side announced that, in accordance with the State`s Priority Scientific Research Plan, the funds needed to implement bilateral projects under NICA had been made available. For its part, the Russian party reaffirmed its intention to continue to support cooperation in these projects. Representatives of the responsible organizations, namely Deputy Director of the Institute of Modern Physics of the Chinese Academy of Sciences Zhao Hongwei and Deputy Director of the High Energy Physics Laboratory JINR Hamlet Hamlet Georgievich Khodzhibagiyan, discussed the progress made in implementing these projects in their reports to the meeting. The structure of participation has the effect of achieving the revenues and risks inherent in transferring the loan to participation. Therefore, if foreign investors use this method to participate in a domestic loan, they will have a similar result to that of a credit transfer.
Since there is no legal relationship between the borrower and the participant, the borrower`s creditor remains the original lender, so there is no external debt for the borrower and domestic debt does not become an external debt. Based on our experience, when a foreign investor participates in a capitalized stake in a national bank, it is considered a national bank that is reimbursed by PBOC or SAFE by a foreign investor who attributes this to the registered external debt ratio of the national bank. However, under the Funded Participation Agreement, the payment of the domestic bank to the foreign investor is subject to conditions. If the national bank does not recover enough funds from the borrower to pay all the participating funds of the foreign investor, the national bank is not required to pay the balance to the foreign investor.
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