Sat, 13 Mar 1999

Japan lends RI $680m

JAKARTA (JP): Japan has agreed to extend an 80.48 billion yen (US$680 million) concessional loan to Indonesia to finance the social safety net and health programs.

The loan agreement was signed by Japanese Ambassador to Indonesia Takao Kawakami and the director general for foreign economic relations at the Indonesian Ministry of Foreign Affairs, Johan S. Syahperi, here on Friday.

The Japanese Embassy said in a statement that the new loans were part of the Miyazawa Plan. Earlier last month, the Japanese government began the first steps toward the disbursement of the up to $2.4 billion support package for Indonesia.

The new loans carry an annual interest rate of 1 percent and will mature in 30 years, including a 10 year grace period.

The loans consist of $380 million for the social safety net program and $300 million to cofinance the health and nutrition development program headed by the Asian Development Bank. (rid)