ID :
33458
Tue, 12/02/2008 - 06:42
Auther :
Shortlink :
http://m.oananews.org//node/33458
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ADB PLEDGES $700 M LOANS TO RI IN 2009
Jakarta, Dec 1 (ANTARA) - The Asian Development Bank (ADB) has agreed to extend US$700 million in loans next year to help Indonesia overcome the threat of financing difficulties as a result of scarce liquidity in the market.
The loans consisted of program loans worth US$500 million and project loans worth US$200 million, ADB Vice President Lawrence Greenwood said here on Monday.
He said ADB was also committed to providing Indonesia with contingency fund (standby loans) outside the regular loans. However, the bank and the Indonesian government still had to discuss the terms of the contingency fund which would involve very significant amount.
"One thing is clear, the scheme of the contingency fund will be different from that of regular loans which are based on the OCR (official capital resource) scheme," he said.
According to ADB, the US$500 million program loans will be used to finance two programs, namely the second phase of the development policy support program (DPSP) which will cost US$200 million and the capital market development program which will cost US$300 million.
Meanwhile, the project loans will be used to finance a number of projects, including metro sanitation and health project and energy efficiency project.
In addition, he added the Manila-based bank would also try to extend loans to finance the Indonesian infrastructure financing facility (IIFF) and hoped the board of the bank's executive directors would approve the proposed loan in the first quarter of 2009.
ADB has since the 1990s extended about US$1 billion in loans to Indonesia every year to offset the country's budget deficit and conduct structural reforms.
The loans consisted of program loans worth US$500 million and project loans worth US$200 million, ADB Vice President Lawrence Greenwood said here on Monday.
He said ADB was also committed to providing Indonesia with contingency fund (standby loans) outside the regular loans. However, the bank and the Indonesian government still had to discuss the terms of the contingency fund which would involve very significant amount.
"One thing is clear, the scheme of the contingency fund will be different from that of regular loans which are based on the OCR (official capital resource) scheme," he said.
According to ADB, the US$500 million program loans will be used to finance two programs, namely the second phase of the development policy support program (DPSP) which will cost US$200 million and the capital market development program which will cost US$300 million.
Meanwhile, the project loans will be used to finance a number of projects, including metro sanitation and health project and energy efficiency project.
In addition, he added the Manila-based bank would also try to extend loans to finance the Indonesian infrastructure financing facility (IIFF) and hoped the board of the bank's executive directors would approve the proposed loan in the first quarter of 2009.
ADB has since the 1990s extended about US$1 billion in loans to Indonesia every year to offset the country's budget deficit and conduct structural reforms.
