The government is looking at tapping multilateral institutions to avail of loan packages in support of measures addressing the coronavirus disease 2019 (COVID-19) outbreak, the country’s finance chief said yesterday.
Finance secretary Carlos Dominguez told reporters that the government is closely monitoring the effects of the contagion on tourism and the supply chain of industries, as well as preparing the appropriate fiscal responses.
“We have yet to determine the expected impact on the economy and the appropriate response,” Dominguez said, when asked by how much the deficit cap can be raised to support these fiscal responses.
“I am certain that the Monetary Board is ready as well with measures to counter the ill effects of COVID-19,” he added.
Dominguez was asked if the Philippines is eyeing to avail of financial assistance from multilateral institutions, especially since both the Asian Development Bank (ADB) and just yesterday, the World Bank, announced financial support for developing member countries for COVID-19 country response.
“We are currently in discussions with the Department of Health (DOH) on a loan package with multilateral agencies, and this announcement of the World Bank is certainly welcomed,” Dominguez said.
He said the eyed loan package would be specific to the DOH, “with emphasis of quick reactions to COVID-19 and similar events.”
Dominguez said that he doesn’t have the exact figure yet as to how much is required for the Philippine government’s COVID-19 response.
According to reports, the DOH has already requested a P2 billion supplemental budget from Congress for its measures that will specifically address COVID-19, however this is still pending approval.
Dominguez said that should the supplemental budget be approved, the loan packages, which multilaterals offer with low-interest rates, will still be pursued.
Aside from the World Bank, the ADB last week approved another $2 million to assist developing countries in Asia and the Pacific in containing the COVID-19 outbreak, and improve resilience to this and other communicable diseases.
Earlier in February, ADB also provided $2 million in funds to strengthen the immediate response capacity in Cambodia, the People’s Republic of China, the Lao People’s Democratic Republic, Myanmar, Thailand and Viet Nam.
“Over the longer term, this can be scaled up to focus on supporting pandemic preparedness and building resilience,” the multilateral agency said.
The ADB said the latest funds will be available for all ADB developing member countries in updating and implementing their pandemic response plans, including buying emergency supplies and equipment; assessing health system and economic impacts to improve future resilience; and coordinating better regionally to prevent, detect, and respond to animal and human disease outbreaks.
The work will be conducted in close collaboration with the World Health Organization.
