PH secures 10-B yen post-disaster standby loan from Japan

MANILA – The Japanese government on Friday disbursed JPY10 billion (approximately PHP4.59 billion) to the Philippines, the fourth and final tranche of the Post-Disaster Standby Loan Phase 2 (PDSL 2).

Released through the Japan International Cooperation Agency (JICA), the PDSL 2 is intended to supplement the country’s response measures in times of catastrophes and health emergencies.

In a statement, the Japanese Embassy in Manila said the disbursement was in view of the recent declaration of enhanced community quarantine (ECQ) in the National Capital Region (NCR) and the need to support vulnerable sectors and further enhance institutional health capacities in the country.

“On this basis, the government of Japan received a disbursement request from the government of the Philippines for the allocation of the remaining portion of the PDSL 2 to the Philippines’ pandemic response and recovery interventions such as the provision of emergency subsidies and strengthening of preventive mechanisms,” it said.

The loan accord for the PDSL 2 was signed between JICA and the Department of Finance (DOF) in September 2020, establishing a contingency fund from which Manila could withdraw up to JPY50 billion (around PHP23 billion).

The first tranche of the PDSL 2 worth JPY10 billion was released in October 2020, following the extension of the state of calamity in the Philippines due to the pandemic.

The two other disbursements were made this year– the JPY10 billion in January 2021 to aid rebuilding efforts after Typhoons Quinta, Rolly, and Ulysses; and the JPY20 billion (around PHP9 billion) in June 2021 to augment the country’s Covid-19 war chest.

“Along with other provisions from Japan during this health crisis, the government of Japan expressed high hopes that the PDSL 2 served its purpose as a quick-disbursing budgetary support that would open the way for the Philippines to fully recover from the impact of the current pandemic,” the Embassy said.