The Japanese government, through Japan International Cooperation Agency (JICA), released 10 billion yen to Philippines government as second tranche disbursement under the Post-Disaster Stand-by Loan Phase 2 (PDSL 2) on January 5, 2021.
“This assistance is expected to greatly contribute to the multifaceted and intensive efforts of the Government of the Philippines to redress the economy of the country and its regions devastated by Typhoons Quinta, Rolly, and Ulysses last year, and to recover the livelihood of vulnerable sector seriously affected by them,” the Japanese Embassy in Manila said.
It noted that JICA entered into loan agreement with the Department of Finance (DOF) on September 15, 2020 for this 50-billion-yen loan (approximately PHP 24 billion pesos) to facilitate swift recovery after the onslaught of natural and health-related disasters.
“This is the second time this special type of financing is extended to the GOP (Government of the Philippines), with the first phase made available to support recovery from Typhoon Yolanda back in 2013. The loan has a repayment period of 40 years and a grace period of 10 years, with a fixed interest rate of 0.01% per annum based on highly concessional terms. As a quick-disbursing budgetary support, the PDSL 2 defines clear guidelines on the trigger of disbursement including a proclamation of state of calamity or public health emergency,” the Japanese embassy said.
“The issuance of PDSL 2’s first tranche worth JPY 10 billion to the GOP on October 27, 2020 was prompted by the extension of state of calamity throughout the Philippines due to COVID-19 under Proclamation No. 929 on September 16, 2020. Of the same amount, the second tranche will be disbursed accordingly following the signing of Proclamation No. 1051 on November 18, 2020, which declared a state of calamity in the entire Luzon owing to the massive destruction caused by the recent typhoons,” it added.
“This loan assistance from Japan is in line with the commitment made by Prime Minister SUGA Yoshihide with President Rodrigo Duterte during their recent summit telephone talk on December 14, 2020. Conveying his message of sympathies to the Filipino people in these difficult times, Prime Minister Suga reaffirmed Japan’s resolve to help the Philippines make a strong rebound both from the pandemic and natural disasters. The Embassy believes the PDSL 2, along with other ongoing assistance from Japan, will be instrumental in paving the way for the Philippine economy to get back on track towards sustained long-term development,” the Japanese embassy said.