Japan gives low interest loan to Laos

(KPL) The Japanese government has decided to provide 1.5 billion yen of Official Development Assistance loan (ODA) to the Government of Laos with the annual low-interest rate of 0.01 per cent and 40 years of repayment period, including a ten-year grace period.

The Japanese ODA loan was given to Laos with a view to supporting the promotion of various types of reformations under the country’s economic and social development projects.

The financial assistance was agreed during the visit of high-ranking officials of a Lao delegation led by Prime Minister Bouasone Bouphavanh to Japan for the Mekong-Japan Summit, held in Tokyo, Japan, on 6-7 November. The note was signed between Mr Katsuya Okada, Japanese Minister of Foreign Affairs, and Dr Thongloun Sisoulith, Minister of Foreign Affairs, on 7 November in Tokyo.

This loan is being extended in cooperation with the Fifth Poverty Reduction Support Operation (PRSO5) currently being extended to Laos by the World Bank. Along with supporting the promotion of various types of reformations, this aid will provide emergency financial assistance and economic stimulus to the Government of Laos, which is affected by the worldwide financial and economic crisis.

KPL Lao News Agency