ADB to subsidize interest

ADB to subsidize interest

TOKYO (Dow Jones): A Japan-funded Asian Development Bank
facility aimed at easing the region's currency crisis will
provide credit guarantees and interest rate subsidies, the Nihon
Keizai Shimbun reported in its Thursday morning edition, citing
Nalin P. Samarasinghe, resident representative of the ADB's Japan
office.

The three-year program, which is expected to be launched this
year, will target Indonesia, Malaysia, the Philippines, Thailand
and South Korea, but it could be expanded to other nations if
necessary.

Samarasinghe indicated that the program will subsidize
interest payments on loans from the ADB and foreign banks.

In priority cases, the interest rate on an ADB loan, typically
6 percent, would be slashed to 1 percent.

A special 7.5 billion yen contribution from Japan will be used
for funding the interest subsidies.