The Philippines signed a commitment deal with China-led Asian Infrastructure Investment Bank (AIIB) for a $750 million loan to aid the government’s coronavirus disease 2019 (COVID-19) funds.
The $750-million loan agreement seals AIIB’s commitment to co-finance with the Asian Development Bank (ADB) the country’s COVID-19 Active Response and Expenditure Support (CARES) program.
The Department of Finance (DOF) CARES is a quick-disbursing budget support facility for funding the government’s programs to fight COVID-19 and mitigate the economic impact of the pandemic in the country.
Finance Secretary Carlos Dominguez III and AIIB acting director-general Rajat Misra signed the Philippines and AIIB loan commitment agreement on Friday, June 5.
“The loan package from the AIIB will help augment our funding requirements necessary to mitigate the severe negative impact of COVID-19 on our people and our economy. On behalf of the Philippine government, we thank the AIIB and President Jin Liqun for committing with the ADB to support the CARES program, which will go a long way in helping our people get back on their feet, and our economy recover and emerge stronger after the crisis,” Dominguez said.
“The focus of our efforts is to help the government tackle the immediate health and economic challenges posed by the pandemic. AIIB’s support will contribute to building economic resilience and ensuring quick recovery,” said AIIB vice president DJ Pandian.
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The full disbursement of the $750 million AIIB loan is expected to be completed within June. The AIIB loan carries a maturity period of 12 years, inclusive of a three-year grace period.
The AIIB’s COVID-19 Crisis Recovery Facility has committed an initial $5 billion to $10 billion “to support AIIB members’ urgent economic, financial, and public health needs and quick recovery from the crisis.”
The Asian Infrastructure Investment Bank is a multilateral development bank that aims to support the building of infrastructure in the Indo-Pacific region. The bank currently has 78 members as well as 24 prospective members from around the world. Its headquarters is located in Beijing, China.
The Philippines, as of June 8, has recorded 22,474 COVID-19 cases, 1,011 deaths, and 4,637 recoveries.