ADB Amends Rate for Sovereign Loans

The Asian Development Bank has modified its charges for new Libor-based loans and local currency loans to sovereign borrowers or borrowers with sovereign guarantees negotiated on or after July 1, 2010, Xinhua reports.

“The revision reflects ADB’s continuous commitment to safeguard ADB’s financial strength based on sounding banking principles, while striving to provide resources for developmental lending at the lowest and most stable funding costs and on the most reasonable lending terms,” ADB Treasurer Mikio Kashiwagi said in a statement.

Under the new loan pricing structure, the existing effective contractual spread of 0.2 percent per annum will be adjusted to 0.4 percent.

About the author

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    Ma. Rizza Leonzon

    As a former staff writer, Rizza focused mainly on business coverage, including key donors such as the Asian Development Bank and AusAID.