PH foreign borrowings, grants vs COVID-19 hit P1.3T | Inquirer Business

PH foreign borrowings, grants vs COVID-19 hit P1.3T

By: - Reporter / @bendeveraINQ
/ 05:32 AM January 15, 2022

The Philippines’ foreign borrowings plus the grants it received to finance COVID-19 response since the start of the pandemic have reached a combined $25.79 billion or P1.32 trillion, the Department of Finance (DOF) said on Friday.

In a report, the DOF said external financing—loans from multilateral lenders and bilateral development partners as well as offshore commercial borrowings through sovereign bonds—injected into the national budget as part of the COVID-19 war chest amounted to $22.55 billion, or P1.15 trillion, as of Jan. 14.

The latest additions to foreign-sourced budgetary support included six loans, which took effect—signed by the government and its creditors, and then made ready for disbursement—last month and this month, such as the World Bank’s $600-million promoting competitiveness and enhancing resilience to natural disasters development policy loan (subprogram 3) and the $500-million Philippines fourth disaster risk management development policy loan with a catastrophe drawdown option.


The Manila-based Asian Development Bank’s (ADB) $600-million build universal health care program and $400-million local governance reform program (subprogram 2) were also added to the debt pile in December 2021.


Also part of budgetary support financing were Agence Française de Développement’s $285.22-million disaster risk reduction enhancement at the local level program, as well as Export-Import Bank of Korea-Economic Development Cooperation Fund’s $100-million program loan for COVID-19 emergency response program (vaccination program).

On top of program loans, the Philippines secured $3.19 billion (about P163.1 billion) in project loan financing to fund specific projects, including the purchase of vaccines and boosters.

Following the $1.2 billion it borrowed from the World Bank, the ADB, and the China-led Asian Infrastructure Investment Bank (AIIB) in March 2021 to buy vaccines, the Philippines obtained another $800 million from the same three development banks in December to purchase booster and pediatric shots.

The total of $2 billion (about P102.2 billion) in loans for vaccine procurement funded the unprogrammed appropriations set aside in last year’s and this year’s national budgets.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

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.

The Inquirer Foundation supports our healthcare frontliners and is still accepting cash donations to be deposited at Banco de Oro (BDO) current account #007960018860 or donate through PayMaya using this link.

TAGS: COVID-19, foreign borrowings

© Copyright 1997-2024 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.