Japan seen continuing fund support for PH

MANILA, Philippines—The Japanese government, the biggest source of official development assistance (ODA) for the Philippines, is not expected to reduce its financial support even as it tries to cope with one of the worst disasters it has experienced.

According to BSP Governor Amando Tetangco Jr., the Japan International Cooperation Agency (Jica), which extends the Japanese government’s ODA to recipient countries, has not indicated any intention to cut its support to the Philippines.

“So far, there has been no indication of a reduction in ODA from Japan,” Tetangco, one of the key economic managers of the government, said Wednesday during an economic forum organized by the Chamber of Thrift Banks.

Economic Planning Secretary Cayetano Paderanga Jr. supported Tetangco’s statement, saying that the Japanese government was bent on pursuing financial support to the Philippines.

“Japan has declared that they are determined to delivering on their commitments, including ODA,” Paderanga said in a text message to the Inquirer.

Hypothetically, Tetangco said, a cut in Japanese loan and grant assistance could somewhat disrupt funding of vital developmental projects and programs of the Philippines and thus dampen its economic performance.

But he said there should be no fear of a cut in ODA from Japan given that the Japanese government was not making any changes in the ongoing loan and grant agreements with the Philippines and has not expressed intention to reduce the amount of support moving forward.

The latest ODA review conducted by the National Economic and Development Authority showed that Japan was the biggest source of developmental loans and grants for the Philippines as of end-2009, providing an amount of assistance more than that given by multilateral lending institutions like the World Bank and the Asian Development Bank.