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)