MANILA: The Philippines' foreign debt rose to US$54.9 billion

MANILA: The Philippines' foreign debt rose to US$54.9 billion as of end-June, the central bank said Friday.

It was 2.7 percent higher than the end-March figure due to the revaluation by more than $2 billion on third currency-denominated debt.

This was a result of the continuing depreciation of the U.S. dollar against third currencies, central bank deputy governor Amando Tetangco said.

The share of public sector debt to total debt stock declined by 0.4 percentage points to 65 percent due to net borrowings by private banks totaling $500 million, he said in a statement.

Maturities remained favorable with 89.4 percent of the total representing medium- and long-term maturities averaging 16.2 years, and 10.6 percent representing short-term accounts.

The debt stock remained largely denominated in two major currencies with U.S. dollar accounts representing 56 percent and Japanese yen accounts representing 25 percent. Euros accounted for just three percent, it added. -- AFP

Japan gives loans to Thailand

TOKYO: The Japanese government said Friday it will give up to US$372.6 million in loans to Thailand to help fund airport and powerline projects there.

Japan will lend up to 34.8 billion yen ($286.6 million) to Thailand for an airport project in Bangkok, while another loan of up to 10.4 billion yen ($86.0 million) will go towards an underground powerline project in the Thai capital, the Japanese foreign ministry said.

Most of the money must be paid off in 25 years with a seven- year grace period. But a portion allocated to conultants for the airport project will be repaid in 40 years with a 10-year grace period. -- AFP

India minister opposes CPO duty cut

NEW DELHI: India's Agriculture Ministry has objected to any cut in the import duty on crude palm oil, the Economic Times newspaper reported Friday.

The Agriculture Ministry has sent a letter to the Finance Ministry - which takes the final decision on import duty changes - opposing any cut in CPO duty, the report said.

Currently, India charges a 65 percent duty on CPO imports.

CPO is used in the production of vanaspati oil and vanaspati manufacturers have been demanding a duty cut in the face of rising CPO prices, the report said.

Although CPO prices have fallen recently, they had been trending upward in previous months. Thursday, CPO, free-on-board Indonesia, was quoted at $355 a metric ton. By comparison, in mid-August, CPO was quoted at $400 per ton, up from $375 per ton a month earlier, data from the Solvent Extractors Association of India showed. -- Dow Jones

South Korea plans 'iron silk road'

SEOUL: President Kim Dae-jung said Friday he will seek support for a project to create an "iron silk road" connecting the divided Korean peninsula with Europe by rail when he meets Asian and European leaders next week.

Kim made the remarks before leaving for Denmark later in the day to attend a summit of European and Asian leaders that opens in Copenhagen over the weekend.

On Thursday soldiers of the two Koreas opened parts of their heavily fortified border and began removing mines to reconnect cross-border road and rail links that have been severed since the 1950-53 Korean War.

If plans go smoothly, a cross-border road will be reconnected as early as November and a railway by year's end.

South Korean experts say a rail link between the Koreas and Europe would have a huge economic impact, cutting by half the cost of exporting goods to Europe, now sent mostly by ship. -- Ap

Argentine GDP contracts 14.9%

BUENOS AIRES: Argentina's gross domestic product contracted 14.9 percent in the first six months of 2002 compared with the same period last year, the national statistics institute Indec reported Friday on its web site.

It said output declined 13.6 percent in the second quarter from the same period last year and 16.3 percent in the first.

The country, gripped by recession for the past 15 quarters, is seeking a re-scheduling of its debt under an International Monetary Fund economic stabilization program.

President Eduardo Duhalde predicted in June that Argentina would emerge from recession next year with growth of three percent. -- AFP