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.