PH to Receive ₱10 Billion from Japan Under Stand-by Loan Agreement

The government of the Philippines (GOP) is expected to receive a ₱10 billion loan from the government of Japan (GOJ). The funds will be released through the Japan International Cooperation Agency (JICA) within the month as part of the Post-Disaster Stand-by Loan Phase 2 (PDSL 2).

According to JICA, the loan is aimed at supporting the Philippines’ ongoing pandemic response. This includes testing, expansion of quarantine facilities, and the government’s social amelioration program.

The release of the loan was requested after the most recent implementation of an enhanced community quarantine (ECQ) with Metro Manila and nearby provinces to battle the resurgence of COVID-19 cases.

“Upon the disbursement request of the GOP, the approval of this third tranche came as a result of the successful summit teleconference between Prime Minister Suga Yoshihide and President Rodrigo Roa Duterte held on May 19,” JICA explained in a statement.

The PDSL 2 was signed on September 15, 2020, facilitating a ₱25-billion-yen loan between JICA and the Department of Finance (DOF). Since then, a total of ₱10 billion has been disbursed by the GOJ.

October 27, 2020, marked the release of the first tranche of the PDSL 2 amounting to ₱5 billion after the state of calamity due to COVID-19 was extended.

Another ₱5 billion followed in the second tranche, which was issued on January 5, 2021, after Typhoons Quinta, Rolly, and Ulysses struck various parts of Luzon.

Source: Business Mirror