Philippines, AIIB ink pact on co-financing for COVID-19 response

The Philippines has signed an agreement with the Asian Infrastructure Development Bank (AIIB) committing the multilateral lender to extend a loan of 750 million USD to support government efforts to mitigate the COVID-19 outbreak.

10, Jun. 2020

Photo by Mara Rivera on Unsplash
Photo by Mara Rivera on Unsplash

HANOI, VNA - The Philippines has signed an agreement with the Asian Infrastructure Development Bank (AIIB) committing the multilateral lender to extend a loan of 750 million USD to support government efforts to mitigate the COVID-19 outbreak.

The Philippine Department of Finance (DOF) said on June 9 that it intends to use the new loan to augment the funds needed to slow down the viral transmission and carry out an economic recovery plan designed to fuel growth and create jobs.

In its statement, the DOF said the loan accord cements the AIIB's commitment to co-finance with the Asian Development Bank (ADB) in the Philippines' COVID-19 Active Response and Expenditure Support (CARES) programme.

The AIIB loan carries a maturity period of 12 years, inclusive of a three-year grace period.

Last month, Philippine Finance Secretary Carlos Dominguez signed an agreement with ADB Country Director for the Philippines Kelly Bird that would enable the government to access up to 1.5 billion USD in budgetary support from the bank to augment funds for the CARES programme.

At least 7.3 million Filipinos lost their jobs in April 2020 as the unemployment rate in the Philippines rose to a record high 17.7 percent in April 2020 due to the economic slowdown triggered by the COVID-19 lockdown since mid-March. - VNA