PH’s foreign borrowings for COVID-19 hit $8.13 billion

By: - Reporter / @bendeveraINQ
/ 02:45 PM August 06, 2020

MANILA, Philippines — Foreign borrowings and grants secured by the Philippines to fight the health and socioeconomic crises caused by COVID-19 further inched up to nearly P400 billion as of August, the Department of Finance (DOF) said.

Its latest report showed that as of Aug. 5, the DOF raised $7.63 billion in program loans from multilateral lenders and bilateral partners as well as commercial borrowings for budgetary support, of which $6.26 billion were already injected into the budget.


Also, the Philippines got $496.36 billion in project loans and grants for specific COVID-19 response projects.

As such, the foreign financing raised so far to better respond to the COVID-19 pandemic totaled $8.13 billion or about P398.6 billion, up from $7.76 billion a month ago.


The budgetary-support financing for COVID-19 response from the Manila-based Asian Development Bank (ADB) were the following: $1.5-billion COVID-19 active response and expenditure support (Cares) program; $200-million social protection support project (second additional financing); $400-million support to capital market generated infrastructure financing (subprogram 1); and $500-million expanded social assistance program.

From the Washington-based World Bank, the Philippines borrowed: the $500-million third disaster risk management development policy loan; $500-million emergency COVID-19 response development policy loan; and $200-million social welfare development and reform project 2 (additional financing).

The DOF also borrowed $750 million from the Beijing-based Asian Infrastructure Investment Bank (AIIB), which co-financed the ADB’s Cares program.

Also part of budgetary-support borrowings were the $2.35 billion raised from the issuance last May of US dollar-denominated global bonds at record-low coupons across two tenors.

Among bilateral aid agencies, the Agence Française de Développement (AFD) extended $165.42 million for the expanding private participation in infrastructure program (subprogram 2), on top of $110.28 million for the inclusive finance development program (subprogram 1), both co-financed with the ADB.

The Japan International Cooperation Agency (Jica) also extended the $458.95-million COVID-19 crisis response emergency support loan.

On top of these loans supporting the budget, the Philippines likewise secured from the World Bank two project loans: a $100-million loan for the COVID-19 emergency response project, as well as $370 million for the support to parcelization of lands for individual titling (Split) project.


As for grants, the following three grant assistance totaling $26.36 million were given to the Philippines: $3-million COVID-19 emergency response project and $5-million rapid emergency supplies provision from the ADB; and $18.36 million from the Japanese government to provide medical equipment to the Department of Health (DOH).


For more news about the novel coronavirus click here.
What you need to know about Coronavirus.
For more information on COVID-19, call the DOH Hotline: (02) 86517800 local 1149/1150.

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