PH’s foreign loans for COVID-19 response nearing $5.8B, says Palace

MANILA, Philippines — The Philippine government has so far borrowed from foreign lenders nearly $5.8 billion to finance its efforts against the COVID-19 pandemic, Malacañang disclosed Thursday.

“Meron na po tayong naiutang na $5.758B, ‘yan po ang sumatutal ng ating naiutang na para sa COVID[-19] responses,” Presidential spokesperson Harry Roque said in an online briefing.

(We have so far borrowed $5.758B, that’s the total loan we have for our COVID responses.)

Citing data from the Department of Finance (DOF), Roque presented the following breakdown of the above-mentioned total foreign loans of the Philippines as of June 4:

• Asian Development Bank (ADB) COVID-19 Active Response and Expenditure Support Program – $1.5 billion
• ADB Social Protection Support Project – Second Additional Financing – $200 million
• World Bank (WB) Third Disaster Risk Management Development Policy Loan – $500 million
• Republic of the Philippines (ROP) Bonds Due 2045 with 2.950% coupon – $1.350 billion
• ROP Bonds Due 2030 with 2.457% coupon – $1 billion
• WB Emergency COVID-19 Response Development Policy Loan – $500 million
• ADB Support to Capital Market Generated Infrastructure Financing Subprogram 1 – $400 million
• WB Social Welfare Development and Reform Project II – Additional Financing – $200 million
• ADB COVID-19 Emergency Response Project – $3 million
• ADB Rapid Emergency Supplies Provision – $5 million
• WB COVID-19 Emergency Response Project – $100 million

DOF Secretary Carlos Dominguez III earlier said $2.26 billion of the external borrowings were already disbursed or injected into the government’s COVID-10 war chest.

Dominguez also said previously that DOF was raising money through domestic and foreign borrowings to fund the government’s COVID-19 efforts as the country enjoys low and concessional rates.

READ: Loans for COVID-19 response continue to rise

These loans come as economic managers await the stimulus package that would revive the country’s economy post-pandemic.

KGA