RP to tap $1b from Japan

RP to tap $1b from Japan

MANILA (AFP): A Philippine government holding firm will tap a special US$1 billion loan from Japan to fund development projects, it was announced here yesterday.

Dakila Fonacier, general manager of the state-owned National Development Corp. (NDC) said the Japanese firm, Marubeni Corp., communicated the offer of the 40-year loan which will have a 0.75 percent interest and a 10-year grace period.

Fonacier said the Japanese government wanted to take a role in pump-priming economies in Southeast Asia and would likely prefer to channel the funds to projects where Japanese firms are actively participating.

He said the government was preparing a list of projects that could benefit from the facility.

The Japanese cited the Philippine Phosphate Fertilizer Corp. (Philphos), an ailing NDC company heavily indebted to Japanese firms, as a possible beneficiary.