Japan lends $1.4b to RP

Japan lends $1.4b to RP

MANILA (AP): President Joseph Estrada Sunday said Japan has
approved a request from the Philippines for $1.4 billion in loans
to be obtained from a fund the Japanese government created to
help crisis-hit Asian countries.

The loan's approval was finalized in a meeting between
Philippine Finance Secretary Edgardo Espiritu and his Japanese
counterpart, Kiichi Miyazawa, in Frankfurt on Friday, Estrada
said in a statement.

The money is part of a total $7.9 billion in loans the
Philippines is seeking to secure under the so-called Miyazawa
Fund to finance 33 government projects.

Miyazawa announced the $30 billion fund in October, which has
been earmarked for six Asian countries - Indonesia, Thailand, the
Philippines, Malaysia and South Korea. Vietnam has since been
added to the list.

The first batch of loans approved by Japan are to be used for
such programs as reforming the Philippine banking system and
improving air quality in metropolitan Manila, Estrada said.

Philippine officials said they are considering a separate
request for money from the fund to help ailing national air
carrier Philippine Airlines recover from massive financial
losses.

Miyazawa has assured the Philippines of more Japanese
financial support, including a separate loan facility from the
Export-Import Bank of Japan, Estrada said.