JICA LOAN FOR FINANCIAL RESILIENCE
Japan International Cooperation Agency (JICA) has approved a 50 billion yen, about P23 billion, to support the country's attempt at financial resilience.
The quick-disbursing loan will act as a buffer fund to support the Philippine government’s budget which Finance Secretary Carlos Dominguez III said “exemplifies the arrangements we require to reinforce our financial resilience.”
“Of course, we hope we will never need to quickly disburse from this loan package. But its availability assures us that we will have ample ammunition to support our budgetary needs in the event a crisis happens. This facility is an important element of our overall resilience,” Dominguez said in his speech at the signing ceremony for the loan.
The post disaster funds may be released to address the impact of an earthquake or other disasters but the Japanese government has expanded the trigger events to include health crises, such as the COVID-19 pandemic.
Dominguez said the stand-by funds may be released in tranches within three years but may be extended up to four times.
The 40-year loan, which has a grace period of 10 years, has a fixed interest of 0.01 percent.
Dominguez said the pandemic underscores the need to further improve the country’s policy and institutional framework for disaster risk reduction and management.
“It likewise emphasizes the need to build our financial resilience against disasters and similar emergencies. The ability to mobilize financial resources without delay is essential to emergency preparedness,” he said.
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