RI obtains IFAD loan

RI obtains IFAD loan

JAKARTA (JP): The International Fund for Agriculture Development (IFAD) has agreed to provide Indonesia with a loan facility of US$18 million, the United Nations Information Center said yesterday.

The loan, signed in Rome by Indonesian Ambassador Witjaksana Soegarda and IFAD's president Fawzi H. Al-Sultan, will be used to finance Indonesia's Eastern Island Small Holder Farming Systems and Live Stock Project.

IFAD, an agency of the United Nations, said that the project, worth $39.3 million, will also receive financing from the Islamic Development Bank and the government of New Zealand.

The project is designed to raise the standard of living of the most marginalized rural communities in Sulawesi and Maluku.

Indonesia has received nine loans from IFAD so far, amounting to $233.3 million.

The terms of the loan are highly concessional, with a service charge of 0.75 percent per annum. It is repayable over 40 years and carries a grace period of 10 years.(hen)