FOREIGN LOANS, GRANTS TO FIGHT COVID-19 REACH $13.36B

Foreign loans and grants obtained by the Philippines to fight COVID-19 further climbed to $13.36billion (more than P 642billion) as of mid December.

The latest Department of Finance data as of Dec.15 showed that the bulk of $12.72 billion went to budgetary sup­port for programs and activities addressing the health and so­cioeconomic crises inflicted by the COVID 19 pandemic.

The new additions to the external financing for budgetary support included the two loans from the World Bank signed in November:  the $580-million loan for the Philippines Bene­ficiary FIRST Social Protection Project and the $200 million additional financing for the Social Welfare Development and Reform Project 2.

The acronym “FIRST” stood for “fast, innovative and responsive service transfor­mation”of about four million poor families receiving conditional cash transfers under the Department of Social Welfare and Development’s Pantawid Pamilyang Pilipino Program.

World Bank documents showed that its Washington ­based board would approve on Dec.16 two more loans—the$600-million Promoting Competitiveness and Enhancing Resilience to Natural Disasters Sub-Pro­gram 2 Development Policy Loan and the $300-million additional financing for the National Community Driven Development Program.

 Also added to the foreign sourced budget support financing were the $2.75 billion in dollar denominated global bonds issued this month.

The Philippines raised $1.5billion from 25-year bonds at a coupon of 2.65 percent on top of $1.25 billion from 10.5 year IOUs at 1.648 percent during the government’s second foray into the commercial dollar debt market this year.

To date, the Philippines also secured $615 million in project loans for specific COVID-19 response-related projects from the World Bank and the Manila based Asian Development Bank (ADB).

The Philippine government likewise received a total of $26.36 million in grants,which will not be repaid, from ADB and Japan INQ