THE ROLE of the Eastern Cape Development Corporation (ECDC) as an effective agent for economic development and support in the province has been strengthened through the restructuring and repayment of loans with the Development Bank of Southern Africa (DBSA). One of the first challenges facing the new organisation after the merger with the Centre for Investment and Marketing in the Eastern Cape (Cimec) was to clear the arrear debts inherited from the former homeland development corporations, says ECDC CEO Mcebisi Jonas. "We inherited 21 loans totalling R69.6 million in debt. Poor administration and financial is management saw the corporation amass arrears dating back as far as 1995 that could have resulted in ECDC being placed under judicial management. Now, I am pleased to announce that we have paid off the arrears of R36.4 million owed to the Development Bank. The remaining R33.2 million has been restructured into four loans - one over 5 years, two over 10 years and one over 15 years to match the original terms of the loans," he said. "The restructuring was based on a win-win situation for both the DBSA and ECDC, using innovative financial instruments" said DBSA Eastern, Western and Northern Cape manager Dennis Thabaneng. "The DBSA wishes to commend the ECDC's commitment to honour the milestones set, especially in repaying the arrears of R36.4 million on June 15 this year." Speaking at the signing of the loan restructuring agreement, Thabaneng said that the environment that enabled the restructuring was founded on the good working relationship between the DBSA and the ECDC and the commitment of its top management. "Further, there was innovative assistance from the private sector in respect of financial instruments available on the market. The payment of arrears was funded from the sale of some of ECDC's Sun International shares." Recent interest rate cuts had also benefited the ECDC in turning the situation around.