Gov’t gets P4.6-B yen loan for cash aid

The Japanese government’s aid arm has released the remaining 10 billion yen (about P4.6 billion) of the 50-billion yen loan extended to the Philippines last year.

This is to enable the Philippine government to give away cash aid to vulnerable sectors in Metro Manila and other areas, which that were again placed under strict quarantine restrictions.

In separate statements on Friday, the Department of Finance (DOF) and the Japan International Cooperation Agency (Jica) said the fourth and final tranche of the 50-billion yen loan “shall be used to support government efforts in providing emergency cash grants to vulnerable sectors in the National Capital Region (NCR).”

The government had set aside P14.67 billion mainly from agencies’ 2020 budget savings for the cash aid distributed in areas on enhanced community quarantine. On top of the initial P10.89 billion distributed to all local governments in Metro Manila, another P3.78 billion was released last week to 11 Metro Manila cities as well as the provinces of Bataan and Laguna for dole outs. These areas remain on a modified enhanced community quarantine (MECQ) from Aug. 20 to Aug. 31.

“The Philippines, through the DOF, has sought Jica’s assistance as quarantine restrictions in the country tightened this month at the onset of COVID-19 Delta variant,” the aid agency said.

“Jica continues to support partner countries like the Philippines in curbing potential breakouts from COVID-19 variants and help Filipinos build back better from this public health crisis. As development partners, we need to work together to manage the crisis, strengthen health systems, and save lives. Jica’s second post-disaster standby loan (PDSL 2) assistance will hopefully support effective and sustainable measures against COVID-19 in the Philippines,” said Eigo Azukizawa, Jica Philippines chief representative.

The DOF said Finance Secretary Carlos Dominguez III had requested Azukizawa to release the last tranche “to support the implementation of the government’s social amelioration program that aimed to provide emergency subsidies to affected low-income households and displaced workers in the NCR.”

Prior to this, Jica disbursed 10 billion yen from PDSL 2 in October last year and another 20 billion yen last June for the Philippines’ COVID-19 response. It also released 10 billion yen in January to assist in the rehabilitation of areas flattened by Typhoons “Quinta,” “Rolly” and “Ulysses” late last year.

This quick-disbursing loan extended by Japan allowed releases in multiple tranches once the government declared a state of calamity or public health emergency.