Japan: ODA Loan to Turkey for Emergency Measures for Rehabilitation of Earthquake Damage

Originally published
1. The Government of Japan has decided to extend an ODA loan of up to a total of 23.6 billion yen to the Government of the Republic of Turkey, which sustained immense damage from the earthquake that occurred in the northwestern part of the country in August this year, with a view to assisting the country's restoration and rehabilitation as well as improving the country's worsened international balance of payments. Notes to this effect were exchanged in Ankara on December 20 (Mon) between Mr. Shigeo Takenaka, Japanese Ambassador to Turkey, and Mr. Selcuk Demiralp, Undersecretary of Treasury of the Republic of Turkey.

2. The content of this ODA loan is as follows:

(1) Type of loan: commodity loan
(2) Maximum amount: 23.6 billion yen
(3) Terms and conditions:
(a) interest rate: 2.2%
(b) repayment period: 25 years (including a 7-year grace period)
(c) procurement method: general untied
(4) Purpose of the loan:

To import materials that are urgently needed for restoration and rehabilitation after the earthquake disaster (including service fees such as transportation). The funding to be provided under the loan may be used retrospectively to settle accounts for imported materials and services that were procured on or after August 17, 1999.

3. With this ODA loan, the total amount of ODA loan that Japan has extended to Turkey will be 420,099 million yen (of which debt reschedulings amount to 7,565 million yen).