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)