Pakistan and Asian Development Bank (ADB) have signed a loan agreement under which the ADB would extend $ 400 million to Pakistan for restoration of facilities and improvement of livelihoods in the earthquake affected areas, said an official statement. The loan from ADB s Special Fund resources was signed by Secretary of Economic Affairs Division (EAD) Muhammad Akram Malik and ADB Country Director in Pakistan Peter L. Fedon. The loan will carry an interest of 1% per year and a maturity of 40 years, including a grace period of 10 years, with repayment of principal at 2% per year during the first 10 years after the grace period and 4% per year thereafter. According to the statement, the agreement will also help finance in reconstruction of rural houses and the implementation period of loan is three years upon loan effectiveness.
