Home News Economics The World Bank grants 1 billion USD loan to Indonesia

The World Bank grants 1 billion USD loan to Indonesia

Indonesia earthquake

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The World Bank said it would provide 1 billion USD loan to the Indonesian government to help rebuild the two islands hit by the tsunami. The Bank will also provide 5 million USD grant for technical assistance to make sure the recovery process runs smoothly.

Kristalina Georgieva, Chief Executive Officer of the World Bank, visited Indonesian city of Palu on Friday, which was destroyed by an earthquake of magnitude 7.5 on the Richter and followed by a tsunami on September 28. More than 20,000 people died, both in the city and in the surrounding area.

On the nearby island of Lombok about 500 people were killed by a series of earthquakes in July and August.

Indonesia hosts annual summits of the World Bank and the International Monetary Fund (IMF) in Bali, west of Lombok.

The World Bank said its preliminary report shows that infrastructure damage, residential and non-residential property damage amounted to about 531 million USD. The financial institution noted that the report did not take into account the dead people, the affected areas of land and the distortion of the economic balance through the loss of jobs.

The loan package may include remittances for the poorest 150,000 people affected by the disasters .