Gov’t in talks for $1B loan aid to fight COVID-19

Finance officials are now in talks to tap a possible loan assistance amounting to $1 billion or around P51 billion to fund the government’s efforts in arresting the spread of the coronavirus disease 2019 (COVID-19).

“Our negotiations for US$1 [billion] loans for combating COVID is still in the process,” Finance Secretary Carlos Dominguez III told GMA News Online.

The Finance chief, however, declined to disclose the source of loans financing.

“[I] will let you know when [negotiations are] successfully concluded,” Dominguez said.

To recall, the World Bank has recently announced an initially available $12 billion in immediate funds to support countries reeling from health and economic impacts of COVID-19. 

The possible $1-billion loan to be tapped by Philippine finance officials is on top of the P27.1-billion packaged unveiled by the Duterte administration’s economic team to help contain the spread of COVID-19 and provide economic relief to businesses and livelihood affected by the threat.

Asked why there is a need to tap new loans to fight COVID-19, Dominguez said, “Revenues are projected to drop by P92 billion.”

The Finance chief earlier said the administration is looking at increasing its borrowings by as much as P90 billion as a “stimulus program” as the COVID-19 spread is seen to widen the government’s budget gap at 3.6% of gross domestic product— higher than a budget gap ceiling of 3% of GDP.

Data from the Bureau of the Treasury showed the government’s debt soared to a record high of P7.73 trillion in 2019 — P5.13 trillion owed to domestic sources and P2.6 trillion from foreign investors.

The entire Luzon was placed under enhanced community quarantine at 12 a.m. on Tuesday, March 17, as ordered by President Rodrigo Duterte on Monday night.

Under this condition, strict home quarantine will be implemented in all households, transportation will be suspended, provision for food and essential health services will be regulated and the presence of uniformed personnel to enforce quarantine procedures will be heightened.

The number of coronavirus disease 2019 (COVID-19) cases in the Philippines rose to 187 on Tuesday after the Department of Health (DOH) confirmed 45 new infections. —LDF, GMA News