ISLAMABAD, Oct 11: The Republic of Korea on Saturday rescheduled Pakistan’s debt amounting to $494.1 million after signing of two separate agreements in this regard.

Agreements for rescheduling debt amounting to $91.6 million and $402.5 million, respectively, were signed by Economic Affairs Division’s Secretary Dr Waqar Masood and Ambassador of the Republic of Korea Jeon Bou-Guan on behalf of their respective governments.

Agreements for rescheduling debt were signed after holding of negotiations between the two governments in pursuance of the Paris Club’s agreed minutes of January and Dec 13, 2001 and subsequently two agreements in this regard were initialled on Aug 12 in Seoul.

The rescheduled ODA debt would now be payable over a period of 38 years, including a 15-year grace period at an interest rate of 3.5 per cent per annum, while the non-ODA debt would be repayable in 23 years, including a five-year grace period at an interest rate of six-month LIBOR plus 0.8 per cent per annum.

These agreements are in addition to the agreement signed between the two governments and Daewoo E&C Co., under which the non-ODA debt, amounting to $96.8 million, has been rescheduled on the same terms.

This amount is related to the uninsured portion of Daewoo’s loan for the Lahore-Islamabad Motorway Project earlier rescheduled under the PC-I.—APP