MANILA, May 20 (Xinhua) -- The Asian Development Bank (ADB) on Tuesday said it has collaborated with Indonesia's Ministry of Finance to successfully convert 27 sovereign loans, which amount to a total of 3.3 billion U.S. dollars, from U.S. dollars and Japanese yen to Indonesian rupiah.
"This marks the ADB's first large-scale local currency conversions, setting a precedent for future transactions," the bank said in a news release. "It reflects the ADB's broader strategy to support the development of local currency markets in the Asia and Pacific region."
"With debt conversion, we can lower our financing costs and minimize financial uncertainty, which in turn provides greater fiscal space to address other pressing needs," said Indonesian Vice Minister of Finance Thomas A. M. Djiwandono.
The ADB said it continues to explore opportunities for local currency financing across the region.
The Manila-based bank said local currency loans constitute more than one-third of private sector outstanding loans and are expected to grow to more than 50 percent in the coming years. ■
