...The new lending terms, which took effect on 1 October 2023, represent the most concessional financing available from ADB, aside from grants. The terms include a 1% interest rate, a 10-year grace period, a 40-year maturity, and principal repayments of 2% per year for the first 10 years after the grace period and 4% per year thereafter. The new terms will help reduce future debt service obligations of SIDS, which have seen eroding fiscal space and rising debt burdens due to the lingering impacts of the pandemic and subsequent global shocks.
...With these changes, all ADB SIDS members are eligible for highly concessional funding or grants. The Cook Islands, Fiji, Niue, Palau, Papua New Guinea, Solomon Islands, Timor-Leste, and Vanuatu are eligible for the concessional ordinary capital resources lending. Solomon Islands and Vanuatu are also eligible for grants from the Asian Development Fund, which provides grants to ADB’s poorest and most vulnerable developing member countries, along with the Federated States of Micronesia, Kiribati, Maldives, the Marshall Islands, Nauru, Samoa, Tonga, and Tuvalu. READ FULL REPORT FROM RELIEF WEB
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