Japan, PH sign 50-billion Yen for PDSL 2 contingency fund

PASIG CITY, Sept. 16 (PIA) – Japanese Ambassador to the Philippines, Ambassador Haneda Koji signed and exchanged notes with Foreign Affairs Secretary Teodoro Locsin on Tuesday to formalize the Post Stand-by Loan Phase 2 (PDSL 2).

According to the Embassy of Japan in the Philippines, the 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.

The Government of Japan assured that it 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. (Embassy of Japan in the Philippines/PIA-NCR)



Source: Philippines Information Agency (pia.gov.ph)

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