The Government of Japan extended loans of 50 billion yen (USD 479 million, Php 23.2 billion) to the Philippines through the Japan International Cooperation Agency (JICA) to boost the country’s effort against the pandemic. The said disbursement forms Phase 2 of Post Disaster Standby Loan (PDSL-2) while Phase 1 comprises the Yolanda (Haiyan) disaster assistance. The economic stimulus is a part of Japan’s 50 billion yen loan for a public health crisis and natural disasters. 

Eigo Azukizawa, JICA Philippines Chief conveyed that JICA stands with Filipinos during Bayanihan and they admire the Philippine government efforts in tackling the COVID-19 onslaught. 

The South-East Asian country is the first recipient of Japan’s Crisis Response Emergency Support Loan (CCRESL). The Asian Development Bank co-financed the loan for Philippine institutions and hospitals.

Officials from both countries signed agreements officializing the contingency fund. Japanese officials include Ambassador Koji Haneda, the Japanese Foreign Minister Motegi Toshimitsu and the JICA Philippines chief. On the Philippine side, the Foreign Affairs Secretary Teodoro L. Locsin and Finance Secretary Carlos G. Dominguez. Under the agreement, the loan will be repaid after 30 years with a 0.01% fixed interest per year.

The Japanese ambassador expressed his happiness that his country is the first to offer a concessional loan for the Philippines to fight COVID-19. Mr. Haneda is optimistic that the fund will help the Philippines recover and stay on the right track.

The Department of Health (DOH) and the National Economic and Development Authority (NEDA) were tasked to implement the CCRESL-backed government response to COVID-19 starting 2020 to 2021. 

JICA refers to the government agency of Japan tasked to carry out most of the official development assistance (ODA) to promote economic cooperation and assist other countries in social and technical development. The agency has been involved in the classroom building, technical skills training, infrastructure and calamity response projects.

References:

1. Shimbun, The Asahi. "Japan Extends $464 Million Loan For Philippines COVID-19 Response: The Asahi Shimbun". The Asahi Shimbun, 2020, http://www.asahi.com/ajw/articles/13506455. Accessed 4 Nov 2020.
2. Staff, Reuters. "Japan Extends $464 Mln Loan For Philippines COVID-19 Response". U.S., 2020, https://www.reuters.com/article/health-coronavirus-philippines-japan-idUSL4N2E81Y8. Accessed 4 Nov 2020.
3. Nicolas, Bernadette, and Bernadette Nicolas. "PHL Gets P23.5-Billion Loan From Japan For Covid | Bernadette D. Nicolas". Businessmirror, 2020, https://businessmirror.com.ph/2020/07/02/phl-gets-p23-5-billion-loan-from-japan-for-covid/. Accessed 4 Nov 2020.
4. News, Arab. "Japan Extends $464 Million Loan For Philippines COVID-19 Response". Arabnews.Com, 2020, https://www.arabnews.com/node/1698141/world. Accessed 4 Nov 2020.
5. Mabasa, Roy. "Japan Lends JPY10-B Loan To PH For COVID-19 Response Efforts - Manila Bulletin". Manila Bulletin, 2020, https://mb.com.ph/2020/10/27/japan-lends-jpy10-b-loan-to-ph-for-covid-19-response-efforts/. Accessed 4 Nov 2020.
6. Embassy, Japanese. "Japan, Philippines Sign 50 Billion Yen Contingency Fund". Ministry Of Foreign Affairs Of Japan, 2020, https://www.ph.emb-japan.go.jp/itprtop_en/11_000001_00200.html. Accessed 4 Nov 2020.