Japan extends P23.54 billion loan to PH’s COVID-19 efforts

  • Japan extended a loan package worth 50 billion yen or approximately P23.54 billion to the Philippine government
  • This is the first loan of its kind for Japan
  • The loan will be in support of the Philippines’ emergency response to COVID-19 as well as related social protection, relief and economic recovery stimulus measures

Japan will extend a loan package of 50 billion yen or P23.54 billion to the Philippines to assist in its efforts against the spread of COVID-19.

Image by DFA

The Department of Foreign Affairs confirmed that Foreign Affairs Secretary Teodoro L. Locsin Jr. and Japanese Ambassador HANEDA Koji signed and exchanged notes to formalize the COVID-19 Crisis Response Emergency Support Loan.

The JPY50 billion loan will be in support of the Philippines’ emergency response to COVID-19 as well as related social protection, relief and economic recovery stimulus measures, the DFA stated.

Japan is the first bilateral donor to be able to offer a loan to the Philippines for its COVID-19 efforts program. The loan package has a concessional lending terms of 0.01 percent fixed interest rate per annum with a maturity period of 15 years inclusive of a 4-year grace period.

The Embassy of Japan in the Philippines stated, “The Philippine government is the very first recipient of this highly concessional loan, specifically designed by the Japanese government to address the global health crisis.”

“We are glad that we are the first donor-country to be able to offer such a loan to the Philippines. The strong ties between Japan and the Philippines, particularly on the economic front have been tried and true for many decades,” Japanese Ambassador to the Philippines Koji Haneda said in a statement.

Image by DFA

Finance Secretary Carlos Dominguez expressed their appreciation between the Japan and Philippines’ cooperation in the fight against COVID-19. He said, “I am sure we shall soon prevail over this emergency. We will return to our growth path and recover our economic momentum. What will be unchanged is the deep friendship and cooperation between our two countries.”