By NNN-APP
Islamabad : Pakistan and Asian Development Bank (ADB) here on Wednesday signed a loan agreement under which the Bank would extend US $ 400 million to Pakistan for restoration of facilities and improvement of livelihoods in the earthquake affected areas.
The loan agreement amounting to US$ 400 million from ADB’s Special Fund resources was signed by Secretary, Economic Affairs Division (EAD) Muhammad Akram Malik on behalf of Pakistan while Country Director of ADB Peter L. Fedon inked the agreement on behalf of the Bank here.
The said loan will carry an interest of 1% per year and a maturity of 40 years, including a grace period of 10 years, with repayment of principal at 2% per year during the first 10 years after the grace period and 4% per year thereafter.
The agreement will also help finance in reconstruction of rural houses and the implementation period of loan is three years upon loan effectiveness.