Japan has signed a new loan worth 30 billion yen or P11.8 billion in local currency to help the Philippines deal with the disruptive impact of inclement weather and health-related disasters on the nation’s budget and the lives of Filipinos.
The 30-year official development assistance (ODA) loan has a fixed interest rate of only 0.01 percent a year and a 10-year grace period.
Ambassador Koshikawa Kazuhiko signed the exchange of notes Tuesday for the quick-disbursing loan that will allow Manila to deal swiftly in recovery efforts following natural and health-related disasters.
The Japanese government started this budgetary support in 2013, helping Filipino families recover lost income and rebuild their lives from the devastating effects of Typhoon Yolanda. In 2020, Japan extended anew this financial support to augment government coffers as the Philippines rolled out its recovery efforts from the COVID-19 pandemic.
The stand-by loan facility is separate from another 1.1-billion-yen grant or P431 million that will allow the Philippine Coast Guard improve its maritime domain awareness and maritime law enforcement capability with the purchase state-of-the-art satellite data communication system.
Ambassador Koshikawa said the grant is hoped to contribute to the economic and social development of the Philippines, strengthen the cooperation in the Sulu-Celebes Sea and its surrounding areas.
