Kyodo: U.S. Says It Can’t Repay Japanese Loan To Build Infrastructure On Guam


Guam –  Japan’s Kyodo news agency is reporting that the U.S. has told Japanese officials that it can not afford to pay back any loan from Japan to build infrastructure on Guam that is needed for the military buildup.

The Kyodo reports quotes unnamed sources as saying that U.S. negotiators have informed their Japanese counterparts that a repayment schedule can not be worked out for more than half of a $740 million loan to be extended by the Japan Bank for International Cooperation.

Read the Kyodo report

According to the report, while up to $435 million, or 58 percent of the loan, would be used to construct sewage facilities, the U.S. government planned to repay that portion with water charges to be collected by the Guam government.

But the Guam government refused to be liable for the repayment, according to Kyodo. And that makes it impossible for Washington to prepare a repayment schedule for the portion, Kyodo’s sources said, adding that the repayment of the remaining portion would be also difficult in light of financial conditions in Guam.

As a result, the Japanese government has begun to consider a delay in extending the loan, despite U.S. demands for its early provision.

However, the report quotes its sources as saying that as a long delay in the transfer could adversely affect the bilateral alliance, the Japanese government has not ruled out the possibility of shouldering the infrastructure-building costs.