Exchange of Notes concerning Yen Loan to Bhutan for the COVID-19 Crisis Response Emergency Support

On May 20, Mr. KAWAZU Kunihiko, Chargé d’Affaires ad interim of Japan to Bhutan, and Mr. Vetsop Namgyel, Ambassador Extraordinary and Plenipotentiary of the Kingdom of Bhutan to Japan, exchanged Notes in New Delhi, concerning the provision of a Yen loan for emergency response to the COVID-19 pandemic (total provision of the loan is up to 3.3 billion yen).
 
Details of the Loan are as follows:

“COVID-19 Crisis Response Emergency Support Loan”
Maximum Amount: 3.3 billion yen
 
In Bhutan, the economic situation has worsened due to the spread of COVID-19 and implementation of broader measures and counter measures such as lockdown, which are necessary for preventing the spread of COVID-19. Due to this, socioeconomic recovery has become a challenge. The financial assistance received through this Yen loan, which is being co-financed by the World Bank, will contribute to the control and mitigation of the impact of the COVID-19 pandemic in Bhutan, thereby promoting socioeconomic stability and development efforts in the country.
 
The Government of Japan will continue to support Bhutan's efforts to address the outbreak of COVID-19 and the country's socio-economic recovery, stability and sustainable development through an effective combination of various assistance measures.

Terms and Conditions of the Loans:

(1) Interest rate: 0.01% per annum
(2) Redemption period: 15 years (including a 4–year grace period)