The latest disbursement of the P8.71 billion received under the second phase of the Post-Disaster Standby Loan (PDSL-2) will help provide emergency assistance to vulnerable sectors, the Department of Finance (DOF) said.
Finance Secretary Carlos Dominguez III said the funds will be used as emergency cash aid to families affected by the enhanced community quarantine (ECQ) and modified ECQ (MECQ) that were imposed in the National Capital Region (NCR) and nearby provinces from March 27 to May 14 this year.
The disbursement represents the third tranche of the PDSL-2 loan extended by the Japan International Cooperation Agency (Jica) to the Philippines in September last year.
“We hope to utilize the amount to be disbursed under PDSL-2 to support a portion of the total requirement for the implementation of the SAP [Social Amelioration Program] and other mechanisms necessary to properly implement Covid-19 response and recovery interventions in the country,” Dominguez said.
Earlier, Dominguez wrote Jica Philippines Chief Representative Eigo Azukizawa last May 11 to request for the disbursement of the JPY20-billion fund.
The declaration of ECQ and MECQ in NCR and the provinces of Bulacan, Cavite, Laguna and Rizal, collectively known as the “NCR Plus Bubble,” served as triggers for disbursements under PDSL-2.
In case of the current Covid-19 pandemic or any other public health emergency, the imposition of an ECQ or its equivalent in the NCR or in any other highly urbanized area in the country will trigger the disbursement of the loan. “Jica will continue to support our partner countries like the Philippines in building back better from the Covid-19 crisis,” Azukizawa said.
“The disbursement hopefully will support the social amelioration program for vulnerable people and sectors, and thereby cushion the economic impact of the pandemic in the Philippines particularly job losses and support economic recovery efforts,” he added. The first and second tranches amounting to JPY10 billion each were released last October 27, 2020 and January 5, 2021, respectively.
PDSL-2 aims to quickly disburse Japanese funding support for post-disaster response efforts in the event of a national calamity or health emergency.
Under this agreement, the disbursement of the standby loan to the Philippines will be made available through: 1) the declaration of a state of calamity; or 2) declaration of a state of public health emergency.