PRESIDENT Arroyo yesterday said economic agreements, the peace process in Mindanao, and the regional security risk posed by North Korea’s missile launches would top the agenda of her visit to Japan.

Arroyo left Manila from the NAIA Centennial Terminal at around 3 p.m.

In an ambush interview shortly before she left, Arroyo said her agenda would be sustaining the momentum resulting from the Japan-Philippines Economic Partnership Agreement (JPEPA) and the peace talks with the Moro Islamic Liberation Front (MILF).

Japan is contributing to the peace process by supporting socio-economic measures to improve the plight of Muslims in the South.

Arroyo, in a prepared departure statement which she did not deliver, said she will discuss with senior Japanese government officials and business leaders security issues "such as the irrational nuclear gamesmanship posed by North Korea."

Japan is the Philippines’ biggest source of official development assistance, its top export market for Philippine goods and products, and second top trading partner, and a major source of investment and tourist arrivals.

Arroyo will meet with the Imperial Couple, Emperor Akihito and Empress Michiko, and with Prime Minister Taro Aso and other top government officials and businessmen.

She is expected to witness the signing on June 18 of two ODA loan packages worth $456 million that would open at least 53,000 new jobs.

Finance Secretary Margarito Teves, in an interview in Tokyo, said the new soft loan packages will be sourced from the Japan International Cooperation Agency with the Land Bank of the Philippines and the Development Bank of the Philippines as conduits.

Teves said the yen loan packages are the $148-million (Y14.6 billion) Agricultural Credit Support Project (ACSP) to be executed by LandBank, andthe $308-million (Y30.38 billion) Logistics Infrastructure Development Project (LIDP) to be executed by DBP.

The two ODA loans to be implemented from 2009-2014 have a maturity of 30 years, inclusive of a 10-year grace period at 1.4 percent interest per annum.

The Agricultural Credit Support Project (ACSP) would make available short, medium and long-term funds to address the credit needs of key agribusiness players. In its first five years of implementation, ACSP is expected to benefit 43,000 farmers and fishers, 220 small and medium enterprises and 30 large agribusinesses.

The Logistics Infrastructure Development Project is an investment financing facility that can be accessed by private corporations, government-owned and controlled corporations and local government units to finance infrastructure and support systems for the Strong Republic Nautical Highway, particularly access/toll roads, bulk grains highway, and cold chain highway.

Teves said the loan packages would come from the multi-billion-dollar facility Japan has committed to help developing countries in Asia cope with the effects of the global financial crisis.

He said the government will secure a $500-million additional ODA from the Asian Development Bank to help bridge the government’s budget deficit this year.