The financing support secured by the Philippine government for its coronavirus disease 2019 (COVID-19) response has totaled to $6.51 billion, data released by the Department of Finance (DOF) showed.
In its website, the DOF said as of June 4, it has raised a total of $5.65 billion in budgetary support financing from the Asian Development Bank (ADB), World Bank, and dollar-denominated global bonds.
Of the amount, $4.05 billion has been disbursed to the government. In addition, a total of $108 million in grant and loan financing have been contracted in support of various projects to be implemented by agencies involved in COVID-19 response, the DOF said.
Yesterday, the DOF said the Philippines has signed an agreement with the Asian Infrastructure Investment Bank (AIIB) committing the multilateral lender to extend a loan of up to $750 million to support government efforts to suppress the COVID-19 outbreak.
This loan accord cements AIIB’s commitment to co-finance with the ADB the Philippines’ COVID-19 Active Response and Expenditure Support (CARES) program, a quick-disbursing budget support facility designed to fund the government’s efforts to combat COVID-19 and mitigate the adverse impact of the contagion on the economy.
Carlos Dominguez, DOF secretary, and AIIB acting director general Rajat Misra signed the loan agreement last June 5. “The loan package from the AIIB will help augment our funding requirements necessary to mitigate the severe negative impact of COVID-19 on our people and our economy. On behalf of the Philippine government, we thank the AIIB and President Jin Liqun for committing with the ADB to support the CARES program, which will go a long way in helping our people get back on their feet, and our economy recover and emerge stronger after the crisis,” Dominguez said.
With the approval of the loan last May 28, AIIB vice president DJ Pandian has said: “The focus of our efforts is to help the government tackle the immediate health and economic challenges posed by the pandemic. AIIB’s support will contribute to building economic resilience and ensuring quick recovery.”
The DOF expects the full disbursement of the $750 million AIIB loan within June. The AIIB loan carries a maturity period of 12 years inclusive of a three-year grace period.