8 Nov 2011

ADB provides big loan to Samoa

2:00 pm on 8 November 2011

The Asian Development Bank has approved a nearly 11 million US dollar loan to help improve Samoa's economy.

It's the second part of the Economic Recovery Support Programme, which began in April last year.

It aims to address Samoa's double economic shock - the global financial crisis, and the 2009 tsunami.

Through the loan the government has been able to assist people directly affected by the tsunami, and introduce free primary schooling.

The second phase includes addressing post-tsunami reconstruction needs and legislative changes to bring transparency on foreign investment and to improve access to finance.

The loan will carry an annual interest charge of one percent for an eight year grace period and then one and a half percent for the remaining 16 years.