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Japan will provide a low-interest loan of 7.43 billion Yen (about US$67.5 million) to central China's Henan Province as support for its afforestation effort.

 

A source with the provincial forestry department said the loan project has just passed the official evaluation.

 

The loan will be a good supplement to Henan's afforestation program in the middle reaches of the Yellow River, which needs 826 million yuan (US$103.3 million).

 

In compliance with the agreement, the time limit of the loan is 40 years and the Henan provincial government will start repaying the it from the 11th year after the loan contract takes effect, with a yearly interest of 0.75 percent.

 

According to the source, farmers from 71 counties in Henan are expected to benefit from the loan.

 

(Xinhua News Agency February 20, 2006)