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Asian Development Bank OK's 1-billion-dollar loan for Indonesia
Jun 4, 2009, 3:36 GMT
Manila - The Asian Development Bank (ADB) said Thursday it has approved a 1-billion-dollar loan to help Indonesia sustain key public expenditures for poverty alleviation, social protection and infrastructure maintenance amid the global economic crisis.
The Manila-based ADB said the loan will allow Indonesia to enhance its financial safety net, better mobilize funds for commercial markets and maintain financial sector stability.
The bank noted that the crisis has significantly hindered Indonesia's ability to access funds from credit markets.
'The global financial crisis has made it expensive for Indonesia to access international debt markets and trade finance, which could constrain spending on essential services and poverty alleviation programmes,' said Jaseem Ahmed, director of ADB's financial sector public management and trade division.
'This loan will enable the government to maintain public expenditures and to respond more effectively to the poverty impacts of the financial crisis,' he added.
The ADB said the loan will have a 15-year-term, including a three-year grace period.
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