The World Bank announced last week that it would loan $275 million to Indonesia for development of low-income housing and $141 million to South Korea for a container terminal at its major port.
The loan to Indonesia is the sixth to assist urban development in the country's crowded cities. It will be combined with other funds in a $1.2 billion project to finance mortgage lending and technical assistance through the Bank Tabungan Negara and the National Urban Development Corp., the bank said.
More than two-thirds of the housing and about half of the mortgage funds will go to families at or below the median income level, with more than 1 million people expected to benefit, the World Bank said.
The loan to South Korea is for the development of a three-berth container terminal at Pusan, the nation's major port at the southeast tip of the Korean peninsula.
Both loans carry a variable interest rate, currently 8.5 percent. International Finance Corp.
The International Finance Corp., the private-sector arm of the World Bank, approved financing packages totaling $24.8 million last week for projects in Mexico, India and Tunisia.
The largest package, a $10 million loan and $1.9 million equity investment, will help finance a $45 million pulp project in Mexico.
The company, Celulosa y Papel de Durango S. A. de Cepadusa, will produce a bleached pulp to be sold to Mexican paper manufacturing companies.
IFC also approved a $10 million loan to help finance a steel plant project in India. The company, the Tata Iron and Steel Co. Ltd., plans to build a $79.9 million plant to process unused iron ore. The State Bank of India will lend the company $4.8 million, and $65.1 million will be raised by cash generation and steel development funds.
The company is the only private-sector steel plant in India.
The final loan approved by the IFC was a $2.9 million loan to a leasing operation in Tunisia.
The company, Tunisie Leasing S.A., provides lease financing to private-sector enterprises and will use the loan to expand its operations.