The Philippines and Japan have signed a 50-billion yen (P22.93 billion) contingency fund to support the country’s early recovery after natural and health-related disasters.
Japanese Ambassador Koji Haneda and Foreign Affairs Secretary Teodoro Locsin Jr. signed and exchanged diplomatic notes on the Post Disaster Stand-by Loan Phase 2 (PDSL 2).
The accord provides that the loan’s repayment period shall be 30 years with a grace period of 10 years. Its fixed interest rate id only 0.01 percent per annum.
Locsin said the fund would help the Philippines better manage its vulnerability to natural disasters, including the Covid-19 pandemic, and to address the adverse effects of such risks on the country’s economy.
The Japanese embassy in Manila said PDSL 2 is the biggest among the PDSL loans Japan has extended to developing countries.
“Japan 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,” the embassy said.