September 15, 2020
His Excellency Ambassador Koji Haneda; JICA Chief Representative Eigo Azukizawa; Finance Undersecretary Mark Joven; Finance Assistant Secretary Maria Edita Tan; fellow workers in government; friends in the media: good afternoon.
The ongoing pandemic underscores the need to further improve our policy and institutional framework for disaster risk reduction and management. It likewise emphasizes the need to build our financial resilience against disasters and similar emergencies. The ability to mobilize financial resources without delay is essential to emergency preparedness.
Today, we have signed the second phase of the Post-Disaster Stand-by Loan with the Government of Japan. This exemplifies the arrangements we require to reinforce our financial resilience.
This loan package makes budgetary support available for quick disbursement in the event of national emergency, such as the COVID-19 pandemic. The declaration of a state of calamity, public health emergency, or the imposition of enhanced community quarantine will activate the package.
The stand-by loan amounts to 50 Billion Japanese Yen or about 23.3 Billion pesos. It will be available for quick disbursement in tranches within three years and may be extended up to four times. Upon signing, this loan package will form part of our financial war chest for future emergencies.
Of course, we hope we will never need to quickly disburse from this loan package. But its availability assures us that we will have ample ammunition to support our budgetary needs in the event a crisis happens. This facility is an important element of our overall resilience.
This standby package carries a fixed interest rate of one-hundredth of one percent per annum with a maturity of 40 years, inclusive of a 10-year grace period. The concessional terms underscore the abiding trust between Japan and the Philippines.
I thank the team that worked tirelessly to finalize this loan agreement. You have once again performed with diligence and speed. For all those involved in the negotiations, this is quite a heroic effort.
Again, we express our heartfelt gratitude to the people and the Government of Japan, represented here today by His Excellency Ambassador Haneda and by JICA Chief Representative Eigo Azukizawa. This loan package is an added testament to the treasured solidarity between our two countries.
Thank you.
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