Japanese ODA Loan to the Lao People’s Democratic Republic

November 7, 2009
Japanese

The Government of Japan has decided to provide a Japanese ODA loan of up to 1.5 billion yen in total to the Government of the Lao People’s Democratic Republic with a view to supporting the promotion of various types of reformations moving forward under the country’s economic and social development projects. Notes to this effect were exchanged in Tokyo on November 7 (Sat) between Mr. Katsuya Okada, Minister for Foreign Affairs of Japan, and H.E. Dr. Thongloun Sisoulith, Deputy Prime Minister and Minister of Foreign Affairs of the Lao People’s Democratic Republic.
Outline of the Project
Project name: Budget Strengthening Support Loan
This ODA 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.
Terms and conditions of the Loan

(1) Interest rate: 0.01% per annum

(2) Repayment period: 40 years (including a ten-year grace period)

(3) Procurement method: general untied

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