ADB approved $7.4 bln loans last year

Singapore, Apr 25 (UNI) The Asian Development Bank (ADB) approved loans worth 7.4 billion dollars last year, a 28 per cent increase over the previous year.

''About 67 projects were supported by the loans approved in 2006,'' said the ADB Annual Report 2006, released today ahead of the 40th Annual Meeting to be held on May 4-7 in Kyoto, Japan.

During the previous year, grants amounting to 538.4 million dollars were approved, earmarked for 43 projects. This amount is less than half the 1.1 billion dollars in grants approved in 2005, when more funds were needed to address the destruction brought by the Asian tsunami and the earthquake in Pakistan.

China received 1.6 billion dollars, or 21 per cent of the total loans that ADB extended last year, making it the biggest loan recipient.

The finance sector was the top recipient of ADB loans last year, receiving 1.8 billion dollars, or 24 per cent, of total loans, sharply higher than the 261.2 million dollars the sector secured in 2005.

The transportation and communications sector received the largest share of loans that ADB provided in 2005.

Loans with government guarantees last year totalled 6.8 billion dollars for 59 projects. Out of this amount, 5.5 billion dollars for 26 loans came from the ordinary capital resources of ADB, while the balance, which financed 45 loans, was sourced from the concessional Asian Development Fund (ADF).

Overall, sovereign lending increased 30 per cent over the 5.2 billion dollars approved in 2005.

ADB approved two non-sovereign loans last year for state-owned enterprises worth 150 million dollars. ADB also approved seven loans amounting to 425 million dollars that did not carry government guarantees.

Private sector loans declined 17 per cent from the 513 million dollars approved by ADB for six projects in 2005.

ADB said it approved eight multi-tranche financing facilities (MFFs) totaling 3.8 billion dollars last year, compared with two MFFs amounting to 1.5 billion dollars in 2005.

ADB approved three MFFs for Pakistan totaling 2.2 billion dollars; three others valued at 1.1 billion dollars for India; a 430 million dollars facility for Bangladesh; and a 50 million dollars facility for China.

UNI