8 Nov 2011

ADB soft loan to help Samoa overcome global economic shock and tsunami

4:40 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.

The Principal Economist at the Asian Development Bank, Emma Veve, says the loan aims to address Samoa's double economic shock - the global financial crisis, and the 2009 tsunami.

"The results were job losses and reduction in remittances. And Samoa's exports fell and tourism was also badly affected. So in response the government put in place a consolidated programme to address both the short-term needs of the people but also to strengthen the foundation for future growth. And this loan from the ADB helps government implement this programme."

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