RI gets loan from S. Korea

RI gets loan from S. Korea

JAKARTA (JP): The South Korean government has agreed to
provide 27.5 billion won (US$15.8 million) in a soft loan to
support health facility development in Indonesia despite the
monetary crisis in the country.

The loan, which would be used to finance district hospital
improvement projects in South Kalimantan and East Kalimantan,
carries an interest rate of 2.5 percent per annum and will mature
in 30 years, including a 10-year grace period.

The loan arrangement was signed here yesterday by the
Ambassador of the Republic of Korea to Indonesia Hyung Ki Min and
the Foreign Affair's Ministry Director General for Foreign
Economic Relations Soemadi Brotodiningrat.

Hyung said that the loan, allocated from South Korea's
Economic Development Cooperation Fund, demonstrated the
consistency of the government's policy to implement commitments
already made to the Indonesian government.

He expressed hope that both countries would successfully
overcome the current financial crisis.

Both countries are among the Asian countries hit by severe
economy crises over the past few months. South Korea and
Indonesia received $60 billion and $40 billion rescue packages
respectively from the International Monetary Fund.

Soemadi praised the Korean government's decision to provide
the loans despite the country's financial turmoil.

He expressed optimism that the Indonesian government would be
able to repay the amount in 30 years, adding that Indonesia would
be able to recover from the financial ailment in the period.

"We get the loans when the tempest (of the monetary crisis)
sweeps our country. In 30 years time, I hope it will be over," he
said to reporters after the ceremony. (09)