The Japanese government has prepared 30 billion yen (P11 billion), which the Philippine government can loan anytime for its calamity response programs.
Department of Foreign Affairs (DFA) Secretary Enrique Manalo and Japanese Ambassador to the Philippines Koshikawa Kazuhiko on Tuesday, August 8, signed an exchange of notes to formalize a loan facility under Japan's Official Development Assistance (ODA).
The initiative is the Post Disaster Stand-by Loan Phase 3 (PDSL 3).
According to the Japanese Embassy in Manila, PDSL 3 "seeks to support swift recovery in the aftermath of natural and health-related disasters, providing a quick-disbursing budgetary support for the Philippines’ calamity response programs."
In his remark, Kazuhiko said the recent move was the third PDSL to be provided for the Philippines.
"First in 2013 to support the recovery from Typhoon Yolanda, and then in 2020 for the COVID-19 pandemic response," he said.
"With Typhoon Egay having attacked the Philippines just last month, it is evident that our countries are frequently exposed to natural disasters such as typhoons, earthquakes, and volcanic eruptions," he added.
The loan's repayment period is set to 30 years after a grace period of 10 years, with a fixed interest rate of 0.01 percent per annum, the embassy said.