THE Government of Japan (GOP), through the Japan International Cooperation Agency (JICA), disbursed JPY 10 billion to the Government of the Philippines (GOP) on August 20, 2021.
The amount serves as the fourth and final tranche of the Post-Disaster Standby Loan Phase 2 (PDSL 2), which is intended to supplement the GOP’s response measures in times of catastrophes and health emergencies.
With the reimposition of the Enhanced Community Quarantine (ECQ) in the National Capital Region (NCR) from August 6, 2021, the need to support vulnerable sectors and enhance institutional health capacities also escalated.
On this basis, the GOJ received a disbursement request from the GOP for the allocation of the remaining portion of the PDSL 2 to the GOP’s pandemic response and recovery interventions such as the provision of emergency subsidies and strengthening of preventive mechanisms.
The loan accord for the PDSL 2 was signed between JICA and the Department of Finance (DOF) on September 15, 2020, establishing a contingency fund from which the GOP could withdraw up to JPY 50 billion.
The very first tranche of the PDSL 2 worth JPY 10 billion was released in October 2020, following the extension of the state of calamity in the Philippines due to the COVID-19 pandemic.
Meanwhile, a total of three disbursements under the PDSL 2 were made this year, including the JPY 10 billion in January 2021 to aid rebuilding efforts after Typhoons Quinta, Rolly and Ulysses, the JPY 20 billion in June 2021 to augment the GOP’s COVID-19 war chest, and this latest JPY 10 billion issued this month.
Along with other provisions from Japan during this health crisis, the GOJ expressed high hopes that the PDSL 2 served its purpose as a quick-disbursing budgetary support that would open the way for the Philippines to fully recover from the impact of the current pandemic.
For more details on the PDSL 2, please visit the links below:
Japan, Philippines Sign 50 Billion Yen Contingency Fund JICA’s Post Disaster Standby Loan Phase 2 released to step up Philippine recovery efforts against pandemic Second Tranche Disbursement of the Post-Disaster Stand-by Loan Phase 2 JAPAN RELEASES THE THIRD TRANCHE OF POST-DISASTER STAND-BY LOAN PHASE 2.