By LEE C. CHIPONGIAN
China Development Bank, China’s largest bank which is even bigger than China Export-Import Bank, has expressed an interest to extend official development assistance (ODA) funds to the Philippines.
Socioeconomic Planning Secretary Romulo L. Neri said talks with the bank will resume soon to discuss possible financial assistance, especially for infrastructure development. "We have started talks with them and we will see," said Neri. He is also director general of the National Economic Development Authority.
China EXIM Bank has already pledged to provide the government billion in donor aids over three years, or $ 2 billion a year.
For 2007, the National Government has programmed .466 billion in ODAs. Of this amount, 0 million are program loans and 0 million are project loans. Program loans are included in the national budget.
ODA funding is one way the NG has had to push for to reduce foreign borrowing and foreign exchange risks. Sourcing more ODAs is a government policy to provide more foreign exchange for expenditures.
However, Neri said at the moment ODA utilization is very poor and the Department of Finance and the Department of Budget and Management are rationalizing the country’s development financing profile.
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