The Department of Finance (DOF) has admitted that the government over-borrowed for the procurement of Covid-19 vaccines, resulting in the need to return unutilized funds.
Finance Secretary Benjamin E. Diokno stated that the government has stopped borrowing for Covid-19 vaccines.
The DOF will collect the actual unutilized vaccine loan from the Department of Health.
In 2021, the government received $2 billion in loans from the World Bank, Asian Development Bank, and AIIB for Covid-19 vaccine supply.
DOF admits over-borrowing for Covid-19 vaccines
Aug 15, 2023 07:20 AM
At a glance
The Department of Finance (DOF) has confirmed that the government's borrowing for Covid-19 vaccine procurement surpassed the actual requirements, leading to the need to return some unutilized funds.
During the Senate briefing on the Proposed 2024 National Expenditure Program with the Development Budget Coordination Committee, Finance Secretary Benjamin E. Diokno said the government has ceased its borrowing activities for Covid-19 vaccines.
Diokno further revealed that it appears the previous administration had overestimated the vaccine needs of the country.
“Yun sa bakuna [for the vaccines], we stopped borrowing money for that. In fact, mag magsusuli pa tayo [we are returning funds],” Diokno said told the Senate briefing on Tuesday, Aug. 15.
“Meron po tayong mga unutilized loans sa Covid [we have unutilized loans in Covid], we are going to return them to ADB [Asian Development Bank] and to World Bank,” he added.
In a text message to Manila Bulletin, Diokno said the DOF is currently requesting the Department of Health (DOH) for the exact figure of unutilized vaccine loans.
In 2021, the Philippines was granted a cumulative loan amount of $2 billion by the World Bank, ADB, and the Asian Infrastructure Investment Bank to facilitate the country’s procurement of Covid-19 vaccines.