U.S., RP sign $40-M commodity
loan agreement
The Philippine and the United States signed on July
14 a loan agreement that will allow the Philippines to import
$40-million worth of high-quality American rice at concessional
sales terms, sell it locally, and use the proceeds to finance
Philippine agricultural development projects. U.S. Ambassador
Francis Ricciardone (right) said proceeds from the commodity loan
will also fund the training of Filipino agriculturists in the
U.S., while Secretary of Agriculture Luis Lorenzo Jr. (left) noted
that much of the funds generated by the loan will go to projects
that will benefit the Muslims in Mindanao. Ambassador Ricciardone,
Secretary Lorenzo and Finance Secretary Jose Isidro Camacho (middle)
signed the agreement during a ceremony held at the Department
of Finance.
Related link: $40-M commodity loan agreement
signed (Press Release)
(From left:) National Food Authority Administrator
Arthur C. Yap, Agriculture Secretary Luis Lorenzo Jr., Finance
Secretary Jose Isidro Camacho, U.S. Ambassador Francis Ricciardone,
U.S. Embassy Agricultural Counselor David C. Miller, and Finance
Under Secretary Juanita Amatong raise their glasses in a toast
after the signing of the commodity loan agreement. The U.S. is
providing the loan under Public Law 480 Title I concessional sales
program, which fosters broad-based sustainable development in
recipient countries while promoting exports of U.S. agricultural
commodities. The loan is payable in 30 years, at 1% percent interest
rate and with a grace period of five years on payments of the
principal amount. The agreement will provide the Philippines about
148,000 metric tons of rice, which represents less than 2 percent
only of the total rice consumption in the Philippines and is not
expected to adversely compete with local rice supply.
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