NEDA sees 'indirect impact' on PH of US freeze on foreign aid

The US move to stop existing foreign assistance may affect the Philippines but only indirectly, National Economic Development Authority (NEDA) Secretary Arsenio Balisacan said on Monday. 

''Not so much directly... And in the short term, much of our loans now are with other countries and multilateral institutions," Balisacan said when asked to comment on the US State Department's "stop-work" order for all existing foreign assistance and new aid.

"The US is the number one source of grants, and that’s where the impact could be but that's a small part of the economy,'' he added.

According to a cable seen by Reuters, the State Department order came after President Donald Trump instructed a pause to review if aid allocation was aligned with his foreign policy.

''The impact could be more indirect. For example, the major shareholders of the multilateral institutions is, are the US, World Bank, and ADB, the lending facility, especially for the official development assistance in those institutions is affected, then it can also be affected in the medium term, ano?'' Balisacan said.

Balisacan said the country's flagship projects are being funded by Japan, South Korea, the World Bank, and the Asian Development Bank. 

The foreign aid pause which is effective immediately applies to both new and existing assistance, Reuters reported, citing the US State Department memo signed by Secretary of State Marco Rubio on Friday.

In a separate statement, DFA spokesperson Teresita Daza said the agency would continue to engage with the US government on the matter, as the US Department of State and other relevant agencies are studying the executive order and its impact on US partnerships.
. –NB, GMA Integrated News