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Metro Manila (CNN Philippines, August 31) – The Philippines secured $ 10.94 billion (approximately ₱ 528 billion) in new foreign loans and grants for the COVID-19 response, an amount worth more than half of the official development assistance owed by the country in 2019. said the National Authority for Economy and Development.
The agency on Monday released its latest report on ODA, which totaled $ 21.62 billion (about $ 1 trillion) last year, and reported on the increase in financial aid it got from foreign countries amid the pandemic of COVID-19.
The country obtained 16 new loans and three additional donations from abroad between January and August 5, a sum intended to finance local COVID-19 interventions.
“These will allow us to provide more support to the people and will also help meet budget priorities in 2020 and 2021 to help address the health crisis,” Acting Secretary for Socio-Economic Planning Karl Kendrick Chua said in a statement.
He clarified that NEDA’s count differs from the $ 8.13 billion reported by the Finance Department primarily due to the currency conversion rates used.
Under the government’s recovery spending plan, the DOF planned to borrow up to $ 8.6 billion or ₱ 436.9 billion from foreign sources.
Last year, the Japanese government remained the main source of ODA, followed by the Asian Development Bank and the World Bank. It was followed by South Korea, China, the United States and the United Nations, according to the report.
By sector, the highest priority was infrastructure, especially expensive, high-impact projects aimed at boosting local connectivity and ease of doing business. Of these, 27 projects are supported by loans and grants worth $ 1.61 trillion, the largest of which are the $ 628.4 billion North-South commuter rail plan and the $ 628.4 billion subway project. of Metro Manila of 357 billion dollars.
Spending for these loan-financed projects also improved, with NEDA reporting a 21 percent increase in fund releases and a 73 percent availability rate for ODA deals. However, the country also had to settle $ 4.66 million in commitment fees for amounts that were not changed due to delays in project implementation.
The government has relied on external loans to support local growth, as the Philippines invests in its needs to increase economic activity.
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