The Government of Japan through the Japan International Cooperation Agency (JICA), disbursed 10 billion yen to the Government of the Philippines on Friday that serves as the fourth and final tranche of the Post-Disaster Standby Loan Phase 2 (PDSL 2) to supplement Manila’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 to 20, the need to support vulnerable sectors and enhance institutional health capacities also escalated.
On this basis, Japan received a disbursement request for the allocation of the remaining portion of the PDSL 2 for the Philippines’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 Philippines could withdraw up to 50 billion yen.
The first tranche of the PDSL 2 worth 10 billion yen 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 10 billion yen in January 2021 to aid rebuilding efforts after Typhoons Quinta, Rolly and Ulysses, the 20 billion yen in June 2021 to augment the Philippines’s Covid-19 war chest, and the latest 10 billion yen issued this month.
Japan, in a news statement, 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.