Philippines inks two loans with AFD worth P14B

The Philippines has inked two more loan agreements cumulative worth €250 million (approximately P14 billion) to finance infrastructure development and financial inclusion in the country.

According to the Department of Finance (DOF), the Philippines inked the two loan agreements with the Agence Française de Développement (AFD) on June 9, both co-financed with the Asian Development Bank (ADB).

The agreements include €150 million for the Expanding Private Participation in Infrastructure Program (EPPIP).

It will be a policy-based loan that aims to heighten private sector participation in infrastructure financing as the government plans to fast-track the implementation of its ambitious infrastructure program.

The agreements also include €100 million for the Inclusive Finance Development Program (IFDP) which will fund initiatives to expand financial services across the country.

It will focus on small entrepreneurs, farmers and fisherfolk, women, and other vulnerable sectors.

"The Philippine government is grateful to the Agence Francaise de Developpement (AFD) for co-financing with the ADB two programs supportive of President Duterte's overriding goal of accelerating infrastructure development in order to spur high growth, attract investments, create jobs and achieve financial inclusion for all Filipinos," said Finance Secretary Carlos Dominguez III.

"Such financial support from the country's development partners like AFD for our priority programs is crucial at this time when the Philippine government is embarking on its resources-intensive, four-pillar strategy to suppress the coronavirus outbreak and provide relief to our most affected sectors while restarting the stalled economy to a quick recovery from the global economic slump induced by the lethal virus," he added.

Just last week, Presidential spokesperson Harry Roque, Jr. said the Philippines has so far secured at least $5.758 billion in loans to sustain efforts against the coronavirus pandemic.—AOL, GMA News