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IDB to disburse US$ 443 million in shariah loan for Aceh reconstruction.

The Islamic Development Bank (IDB said it will soon disburse US$ 443 million in shariah loan to help support rescue, rehabilitation and reconstruction works in Aceh, the hardest hit by Dec 26 earthquake and tsunami. The fund will be used to buy goods with a profit of 2.5%-6% of the loan under the shariah principle, IDB representative in Indonesia Charmeida Tjorkosuwarno said Islamic banks are prohibited by Islamic law to accept and offer loans with interest. Charmeida said the shariah loan fund includes US$ 50 million in soft loan, US$ 3 million in grant, US$ 160 million in ordinary loan to procure equipment needed in Aceh reconstruction and US$ 230 million in additional loan specially to finance import needed in the efforts to cope with the imp[act of the natural disasters. The fund will be given to the government to finance the imports.
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Publication:Indonesian Commercial Newsletter
Article Type:Brief Article
Geographic Code:7SAUD
Date:Jan 11, 2005
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