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June 23, 2024

Philippines’ P1.3T loans, grants help restore economic growth

The P1.3 trillion loans and P2.7 billion grants received by the national government were instrumental in helping the Philippines emerge from the pandemic-induced recession, according to the Department of Finance (DOF).

The Philippines issued P559.08 billion global bonds and received P303.37 billion from Asian Development Bank (ADB), P291.95 billion from the World Bank (IBRD), P66.01 billion from Asian Infrastructure Investment Bank, P47.56 billion from Japan International Cooperation Agency (JICA), P28.96 billion from Agence Française de Développement (AFD) and P10.15 billion from Export-Import Bank of Korea (KEXIM) between 2020 and January this year.

The loans are payable over a period of 40 years starting 2020, requiring a fiscal consolidation program and improved revenue collection.

Furthermore the country also received P2.7 billion in grants from World Bank – European Union with P1.1 billion, the Government of Japan with P1.3 billion and ADB with P406.2 million.

“The loans and grants raised from bond auctions and grants helped the country in fighting the COVID-19 virus and were instrumental in restoring economic growth in 2021,” the DOF said in an economic bulletin.

According to the Finance department, the country has received a total of 76.4 million doses of donated vaccines from bilateral donations and COVAX facility.

A total of 85.5 percent of the total are from the COVAX facility and the 14.5 percent are from bilateral donations.

The Philippines emerged from the pandemic-induced recession with a gross domestic product (GDP) growth of 5.7 percent last year after contracting by 9.6 percent in 2020 due to the impact of the strict COVID-19 quarantine and lockdown protocols.

For 2022, economic managers are looking at a faster GDP growth of between seven and nine percent.