Gov't borrows ₱230 B from dev't partners
Published Jun 1, 2020 12:00 am
By Chino S. Leyco
The Duterte administration has so far borrowed nearly ₱230 billion from foreign development partners and creditors to help support its emergency spending amid the coronavirus pandemic.
According to the Department of Finance (DOF), a total of $4.55 billion in newly contracted foreign loans from the Asian Development Bank (ADB), World Bank, and offshore commercial lenders were sealed by the Philippines as of mid-May.
DOF said that its newly borrowed funds are currently being used for the government’s ongoing efforts to suppress the coronavirus disease (COVID-19) pandemic and provide relief to the most affected sec-tors.
“This amount in budgetary support financing for the COVID-19 emergency,” the DOF’s statement read.
Of the total, $1.7 billion, or around ₱89.2 billion, came from the ADB, $500 million, or ₱25.7 billion, was from the World Bank, and another $2.35 billion, or ₱118.5 billion, was raised from the dual-tranche issuance of the Philippines’ global bonds.
The World Bank also accelerated its disbursement of the $200- million additional financing for the ongoing Social Welfare Development and Reform Project II, bringing the Philippines’ total borrowings from the bank to $4.75 billion.
Last April 28, the Philippines signed a $100-million loan with the World Bank for the COVID-19 Emergency Response Project (ERP) to strengthen the country’s capacity to prevent, detect and respond to the threat posed by the pandemic.
The DOF also raised an additional $8 million in grant financing from the ADB to support two projects implemented by the Department of Health (DOH) and other government agencies dealing with the COVID-19 emergency.
“These financing packages for budgetary support, project loan and grants amount to a grand total of $4.858 billion secured as of May 14 by the DOF for the government’s COVID-19 response efforts,” the department said.
“The DOF’s update on these financing packages formed part of President Duterte’s seventh weekly report to the Congress on the use of the additional powers granted to him under Republic Act (RA) No. 11469 or the Bayanihan To Heal As One Act,” it added.
According to the Department of Finance (DOF), a total of $4.55 billion in newly contracted foreign loans from the Asian Development Bank (ADB), World Bank, and offshore commercial lenders were sealed by the Philippines as of mid-May.
DOF said that its newly borrowed funds are currently being used for the government’s ongoing efforts to suppress the coronavirus disease (COVID-19) pandemic and provide relief to the most affected sec-tors.
“This amount in budgetary support financing for the COVID-19 emergency,” the DOF’s statement read.
Of the total, $1.7 billion, or around ₱89.2 billion, came from the ADB, $500 million, or ₱25.7 billion, was from the World Bank, and another $2.35 billion, or ₱118.5 billion, was raised from the dual-tranche issuance of the Philippines’ global bonds.
The World Bank also accelerated its disbursement of the $200- million additional financing for the ongoing Social Welfare Development and Reform Project II, bringing the Philippines’ total borrowings from the bank to $4.75 billion.
Last April 28, the Philippines signed a $100-million loan with the World Bank for the COVID-19 Emergency Response Project (ERP) to strengthen the country’s capacity to prevent, detect and respond to the threat posed by the pandemic.
The DOF also raised an additional $8 million in grant financing from the ADB to support two projects implemented by the Department of Health (DOH) and other government agencies dealing with the COVID-19 emergency.
“These financing packages for budgetary support, project loan and grants amount to a grand total of $4.858 billion secured as of May 14 by the DOF for the government’s COVID-19 response efforts,” the department said.
“The DOF’s update on these financing packages formed part of President Duterte’s seventh weekly report to the Congress on the use of the additional powers granted to him under Republic Act (RA) No. 11469 or the Bayanihan To Heal As One Act,” it added.