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The Finance Ministry said Monday it will raise the interest rates on loans to public corporations under its fiscal loan program, effective Wednesday.

The barometer rate on loans of more than nine years but less than 10 years and subject to lump-sum repayment at maturity will be raised to 1.4 percent per year from 1.2 percent.

While the loan program is mainly financed by postal savings and public pension funds, the ministry will also raise interest rates on funds deposited in the program.

The ministry will raise those rates for the first time since April, when it adopted a system to change rates in accordance with loan periods and other conditions.

The latest rate hike follows rises in long-term interest rates.

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