Japan, Philippines Sign 50 Billion Yen Contingency Fund

Japan, Philippines Sign 50 Billion Yen Contingency Fund

 On September 15th, 2020, Ambassador HANEDA Koji signed and exchanged notes with Foreign Affairs Secretary Teodoro L. Locsin, Jr. to formalize the Post Disaster Stand-by Loan Phase 2 (PDSL 2).
 This 50 billion yen loan (approximately 24 billion pesos) seeks to support quick recovery after natural and health-related disasters, by promoting policy actions on disaster preparedness and providing a quick-disbursing budgetary support for the Philippines’ calamity response. Under highly concessional terms, the loan’s repayment period is set to 30 years after a grace period of 10 years, with a fixed interest rate of 0.01% per annum.
 This is the second time this special type of financing is extended to the Philippine government, with the first one made available only a few months following the onslaught of Typhoon Yolanda back in 2013. This PDSL 2 is the biggest among the PDSL loans Japan has provided to developing countries.
 Earlier this year, Japan also contributed to the Philippine COVID-19 response program through an assistance package comprising of a 2 billion yen grant aid for the provision of medical equipment and establishment of laboratory surveillance sites, and another 50 billion yen budgetary support under the COVID-19 Crisis Response Emergency Support Loan.
 Japan will continue to be responsive to the needs of the Philippines in its bid to fight the COVID-19 crisis, beef up disaster risk management efforts and achieve a faster economic recovery.