The Department of Finance (DOF) will draw $80 million, or about P4 billion, this week of the World Bank (WB)’s $500-million standby credit line extended to the Philippines to support the national government’s disaster relief and rehabilitation efforts in areas devastated by typhoon Odette.
Carlos Dominguez, DOF secretary, said the WB’s 4th Disaster Risk Management Development Program with a Catastrophic Deferred Drawdown Option (CAT-DDO4) will provide the government immediate access to funds for its ongoing efforts to aid the recovery of typhoon Odette-hit areas.
“This week, the DOF will draw $80 million from the World Bank disaster financing loan to fund the amount with cover in the 2021 budget,” Dominguez said.
He said the government will draw another $120 million from the same WB standby loan facility in the first week of January when the loan cover will be available in the 2022 national budget.
Dominguez issued the statement in response to the calls of Senate Minority Leader Franklin Drilon and Senator Juan Edgardo Angara for the government to do a cash sweep of undisbursed funds and savings in the state coffers to provide funds for the relief and reconstruction efforts in Odette-hit areas.
A presidential declaration of a state of calamity or a public health emergency is required to trigger the release of the funds available under the $500 million WB standby loan facility. – Angela Celis
