ADB loans to Philippines to reach record high $4.2B in 2020

Friday, July 24th, 2020. Filed under: Asian News Money & Business News Philippine News

MANILA, July 24 (Mabuhay) — Loans of the Asian Development Bank (ADB) to the Philippines are expected to reach a record-high $4.207 billion this year, with the lion’s share going to efforts against the coronavirus disease 2019.

According to ADB Philippines country director Kelly Bird, the ADB’s 2020 lending program is the biggest so far for the country, almost double the previous record of $2.5 billion in 2019.

“For this year we’ve reached $4.2 billion and that will be the largest ever for the Philippines,” he told reporters in a virtual briefing.

An itemized list for the 2020 loans was discussed by ADB senior programs officer Oscar Badiola, with six already approved while five more are expected to be approved later this year:

  •  COVID-19 Active Response and Expenditure Support Program – $1.5 billion (Approved April 23);
  • Social Protection Support Project, Second Additional Financing – $200 million (Approved April 27);
  • Support to Capital Market Generated Infrastructure Financing, Subprogram 1 – $400 million (Approved May 6);
  • Expanded Social Assistance Project – $500 million (Approved June 10)
  • Angat Water Transmission Improvement Project, Additional Financing – $126 million (Approved June 18)
  • Local Governance Reform Project (Approved June 26)
  • Competitive and Inclusive Agriculture Development Program, Subprogram 1 – $400 million
  • Inclusive Finance Development Program, Subprogram 2 – $300 million
  • Health Systems Enhancement to Address and Limit COVID-19 – $125 million
  • Disaster Resilience Improvement Program – $500 million
  • EDSA Greenways Project – $130 million

The Department of Finance (DOF) earlier this month said borrowings have reached P1.22 trillion in the first four months of 2020, as the administration ramped its reliance on lending to fund the COVID-19 response and economic relief initiatives.

In June, presidential spokesperson Harry Roque Jr. said the Philippines has secured at least $5.758 billion in loans to support efforts against the coronavirus.

For his part, Finance Secretary Carlos Dominguez III assured that the government borrowing policy is “conservative,” as more loans are being processed to boost the country’s war chest against the coronavirus pandemic. (MNS)

ALSO READ: Philippines reimposes non-essential foreign travel restriction for citizens

Related posts

‘A minus’ credit rating affirmation of PH’s economic strengthADB approves $500-M loan for Philippine 4Ps program