THE Philippines and the Asian Development Bank (ADB) signed on Tuesday an agreement for a $200-million loan as an additional financing for the government’s efforts to provide cash assistance to poor and vulnerable households that have been affected by the quarantine measures imposed to contain the coronavirus pandemic.
The Department of Finance (DOF) said in a statement yesterday this loan accord is the second additional financing provided by the ADB under the Social Protection Support Project (SPSP), which supports the government’s conditional cash transfer program or the Pantawid Pamilyang Pilipino Program (4Ps).
Carlos Dominguez, DOF secretary, signed the loan agreement on behalf of the Philippine government, while Kelly Bird, ADB country director for the Philippines, signed it on behalf of the multilateral agency.
“We thank the ADB for its swift and continuing support for the Duterte administration’s efforts to blunt the impact of the worldwide coronavirus outbreak on our people and the economy,” Dominguez said.
“This SPSP loan will help the government achieve the number one priority set by President Duterte in dealing with the COVID-19 pandemic, which is to save lives and extend a lifeline to millions of poor and low-income Filipinos who lost their incomes and livelihoods following the pandemic-driven work stoppage,” he added.
Ahmed Saeed, ADB vice president, said, “We commend the Philippine government for rolling out the emergency subsidy program aimed at helping poor and vulnerable Filipinos get through this health and economic crisis, as the pandemic curve is flattened.”
“This $200 million loan to assist the government in financing COVID-19 cash grants to poor households under the 4Ps will help achieve this purpose,” Saeed added.
The SPSP aims to provide cash grants to beneficiary-families under the 4Ps covered by the emergency subsidies under Republic Act No. 11469 or the Bayanihan To Heal As One Act.
This budget-support loan will help bridge the immediate financing requirements of the government’s response to this coronavirus crisis through the distribution via cash cards of cash grants to beneficiaries of the 4Ps.
The DOF said the loan for the project, which carries a maturity period of 29 years inclusive of an eight-year grace period, is expected to be disbursed by June this year.
