SEJONG (Yonhap News) ― South Korea has decided to provide lower-interest and long-term loans to Indonesia and the Philippines to help them carry out businesses aimed at building social and economic infrastructures, the Finance Ministry said Tuesday.
Under the economic development cooperation fund program launched in 1987 to help other developing countries with their basic infrastructure facilities, the government will provide $50 million in loans for Indonesia to establish the piped sewerage system on its Batam Island.
The lack of a sewerage system on the island is raising concerns over severe environmental pollution. The decision to provide the long-term loan was made at the request of the Indonesian government, according to the ministry.
The Seoul government also decided to provide $96 million in loans to the Philippines for its efforts to enhance its flood-prevention capacity in the Pampanga region.
“We expect those projects will contribute greatly to building growth infrastructure for the two countries down the road,” the ministry said in a press release.
The EDCF loan provision is the first of its kind provided under the government of President Park Geun-hye, the ministry said, adding that it will keep expanding such support for developing countries going forward.
