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ADB increases loan limit for RI infrastructure development
The Asian Development Bank (ADB) said on Thursday it had increased its capital loan for the Indonesian government to up to US$2
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he Asian Development Bank (ADB) said on Thursday it had increased its capital loan for the Indonesian government to up to US$2.2 billion.
The loan the country will receive to finance its infrastructure development throughout 2016 was up from $1.4 billion in 2015, it added.
'For 2016, insya Allah [God willing], we will increase our loan limit Indonesia can use [for infrastructure development]. This year, we will provide around $1.4 billion for technical assistance but next year, we will be scaling up our assistance to up to $2.2 billion,' ADB vice president Bambang Susantono said as quoted by Antara news agency in Jakarta on Thursday.
He said an increase in the bank's loan limit was adjusted to the government's financial needs in developing infrastructure in the country.
'Indonesia as a country, which has larger development needs, will certainly have larger development costs,' said Bambang after he met Vice President Jusuf Kalla.
ADB Indonesia director Steven Tabor said interest on the loan was 1.2 percent and had a grace period of five years.
Most support from the ADB is used to finance infrastructure programs, which usually take quite a long time, he said. Therefore, he continued, loans usually have a five-year grace period, plus they have relatively low interest. It is only after five years that loans should be paid back. (ebf)
