RP, Japan ink 3 loan deals worth $467 million

TOKYO (Via PLDT) – The Philippines and Japan entered into three loan and grant agreements yesterday amounting to nearly $500 million to finance an agriculture credit facility, flood mitigation project and other infrastructure projects in the country.

President Arroyo and Prime Minister Taro Aso witnessed the signing of the agreements amounting to $467 million at the Big Conference Room at the Kantei as the Office of the Prime Minister is called here.

Mrs. Arroyo arrived here last night for a four-day visit that would include an audience with Emperor Akihito and Empress Michiko as well as meetings with various Japanese firms and funding agencies.

 The loan and grant agreements include a $10.7 million for flood disaster mitigation for Camiguin Island and a $308 million logistics infrastructure development project that would be implemented by the Development Bank of the Philippines (DBP) as an investment financing facility that can be accessed by private corporations, government-owned and controlled corporations (GOCC) and local government units (LGUs) to finance infrastructure and support systems for the government’s road projects, particularly access and toll roads, bulk grains highway, and cold chain highway.

The package has an interest rate of 1.4 percent per annum with a maturity of 30 years inclusive of a 10-year grace period.

The $148 million Agricultural Credit Support Project (ACSP) that would be implemented by the Land Bank of the Philippines (Landbank) will make available short, medium and long term funds to address the credit needs of key agribusiness players.

It is expected to have, on its first five years of implementation, 43,000 beneficiaries for small farmers and fisher folk, 220 small and medium enterprises.