ADB lends Indonesia

ADB lends Indonesia

MANILA (Reuter): The Asian Development Bank (ADB) said yesterday it has approved an US$85 million loan for Indonesia to help improve basic education.

The Bank said the loan would come from its ordinary capital resources.

The loan would have a repayment period of 25 years, including a grace period of five years. The interest rate would be determined according to the Bank's pool-based variable lending rate system for U.S. dollar loans, presently at 6.89 percent.

The Bank said the project would directly benefit 524,000 children in public and private primary schools and junior secondary schools.

The project's total cost was $151.9 million, of which 56 percent would be shouldered by the Bank while the Indonesian government would contribute 37 percent and beneficiary communities seven percent.