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JICA releases P4.7-B post-disaster loan

The Japan International Cooperation Agency has released JPY10 billion (approximately P4.7 billion) under Tokyo’s post-disaster standby loan phase 2 to Manila, which would support Filipino families affected by Typhoons Quinta, Rolly, and Ulysses.

The amount is part of the JPY50-billion loan extended on September 15 to help ensure that contingency funds are available for the country’s response to post-disaster recovery.

“This loan assistance from Japan is in line with the commitment made by Prime Minister Suga Yoshihide with President Rodrigo Duterte during their recent summit telephone talk on December 14, 2020,” the Japanese Embassy said.

“Conveying his message of sympathies to the Filipino people in these difficult times, Prime Minister Suga reaffirmed Japan’s resolve to help the Philippines make a strong rebound both from the pandemic and natural disasters,” it added.

The Embassy believes the PDSL 2, along with other ongoing assistance from Japan, will be instrumental in paving the way for the Philippine economy to bounce back towards sustained long-term development.

The first tranche of PDSL 2 disbursement, amounting to JPY10 billion, was made in October to support the Philippines’ economic recovery from Covid-19.

The loan has a repayment period of 40 years and a grace period of 10 years, with a fixed interest rate of 0.01 percent per annum.

As quick-disbursing budgetary support, the PDSL 2 defines clear guidelines on the trigger of disbursement including a proclamation of state of calamity or public health emergency, the Embassy noted.

This is the second time this special type of financing is extended to Maila, with the first phase made available to support recovery from Typhoon Yolanda back in 2013.