The Japanese government on Tuesday signed and exchanged notes with the Philippines for a JY50 billion (approximately Php24 billion) fresh loans in support of the country's battle against the COVID-19 (coronavirus disease 2019) pandemic.
Called Post Disaster Stand-by Loan Phase 2 (PDSL 2), the loan was signed by Japanese Ambassador to the Philippines Koji Haneda and Foreign Affairs Secretary Teodoro Locsin Jr. in a simple ceremony at the DFA office in Pasay City.
The fresh loan seeks to support quick recovery after natural and health-related disasters, by promoting policy actions on disaster preparedness and providing quick-disbursing budgetary support for the Philippines’ calamity response.
According to the Japanese Embassy in Manila, the loan is under highly concessional terms and the repayment period is set to 30 years after a grace period of 10 years, with a fixed interest rate of 0.01% per annum.
This is the second time this special type of financing is given to the Philippine government. The first one was made available shortly after the onslaught of Typhoon Yolanda in 2013.
The Japanese Embassy added that the PDSL 2 to the Philippines is the biggest among the PDSL loans Japan has provided to developing countries.
At the onset of the COVID-19 (coronavirus disease 2019) outbreak in the Philippines, Japan also contributed to the country’s response to the pandemic through an assistance package comprising of a JY2 billion yen grant aid for the provision of medical equipment and establishment of laboratory surveillance sites, and another JY50 billion yen budgetary support under the COVID-19 Crisis Response Emergency Support Loan.
“Japan will continue to be responsive to the needs of the Philippines in its bid to fight the COVID- 19 crisis, beef up disaster risk management efforts and achieve faster economic recovery,” the Japanese Embassy said in a statement.