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.