Japan has again extended a new loan of 30-billion yen (P12.3 billion) through the Japan International Cooperation Agency, to be used for vaccinating the desired population and help the country’s economic recovery process. The country has borrowed P1.31 trillion in loans and grants for its COVID response from 2020 to January 14, 2022.
The Philippines secured a new 30- billion yen (or P12.3-billion) loan from Japan, which will be used to fund programs to help the economy recover from the coronavirus disease 2019 (COVID-19) pandemic, the Department of Finance (DoF) said.
Finance Secretary Carlos G. Dominguez III and Japan International Cooperation Agency (JICA) President Tanaka Akihiko signed the agreement for the second phase of the COVID-19 Crisis Response Emergency Support Loan (CCRESL 2) in Tokyo, Japan on Monday.
The DoF in a statement said the loan will be used for vaccinating its target population against COVID-19 and expanding the capability of its healthcare system to meet the challenges of possible public health emergencies in the future.
The loan package carries concessional lending terms of 0.01 percent fixed rate annually, with a repayment period of 15 years and a grace period of four years.
These are the same terms as the first phase of the CCRESL, which was worth ¥50 billion, signed in July 2021.
“JICA understands well the value of this program for our recovery and competitiveness in the new economy. The support continues with today’s signing of this ¥30-billion loan agreement to aid the Philippine government’s COVID-19 response measures,” Dominguez said.
3-M Covid vaccines from Japan
During the pandemic, Japan has provided the Philippines with over three million COVID-19 vaccines; budgetary support financing through the CCRESL and the second phase of the Post-Disaster Standby Loan worth a total of $867 million; and a COVID-19 grant aid worth $25.18 million, Business World reported.
Dominguez said that JICA remains the country’s largest official development assistant (ODA) partner, citing ¥1 trillion worth of financing for the flagship infrastructure projects under the “Build, Build, Build” program.
“As we intensify our climate action projects, we hope to also secure additional financing for natural and health-related disaster response programs,” he said.
P1.31-Trillion in loans and grants for COVID
The Philippines has borrowed P1.31 trillion and received grants worth P2.7 billion for its COVID-19 response from 2020 to Jan. 14, 2022.
“The loans will have to be repaid over a period of 40 years starting 2020. This will require a fiscal consolidation program and improved revenue collection,” the DoF said last April 16.
Dominguez last week said the Philippines has to grow “better than 6 percent per year, over the next five or six years” to be able to reduce the debt incurred during the pandemic.
He expressed confidence that incoming JICA President Akihiko Tanaka will be as supportive as his predecessor Shinichi Kitaoka of the country’s development programs.
Tags: #JICA, #DoF, #COVIDresponse, #loansandgrants, #economicrecovery