(Eagle News)–The Philippines has signed a $750-million loan agreement with the Asian Infrastructure Development Bank to help boost the government’s COVID-19 efforts.
According to the DOF, the loan accord cements AIIB’s commitment to co-finance with the Asian Development Bank (ADB) the Philippines’ COVID-19 Active Response and Expenditure Support (CARES) program.
The loan agreement signed with the ADB would allow the Philippines to access loans worth $1.5 billion.
Finance Secretary Carlos Dominguez III and AIIB Acting Director General Rajat Misra signed the loan agreement on Friday, June 5.
“The loan package from the AIIB will help augment our funding requirements necessary to mitigate the severe negative impact of COVID-19 on our people and our economy. On behalf of the Philippine government, we thank the AIIB and President Jin Liqun for committing with the ADB to support the CARES program, which will go a long way in helping our people get back on their feet, and our economy recover and emerge stronger after the crisis,” Dominguez said.
According to the DOF, the full disbursement of the AIIB loan is expected in June.
It carries a maturity period of 12 years inclusive of a 3-year grace period.
The AIIB’s co-financing for the CARES program is the second loan it has extended to the Philippines.
In 2017, the AIIB approved a $207.6-million loan for the $500-million Metro Manila Flood Control Management Project, which it co-financed with the World Bank.