Philippines

PH receives USD100-M loan for Covid-19 response from SoKor

PH receives USD100-M loan for Covid-19 response from SoKor

MANILA (Philippines News Agency) – The Philippines and South Korea have entered into an agreement for the Economic Development Cooperation Fund (EDCF) Covid-19 Emergency Response Program Loan worth USD100 million.

In a press release issued on Monday, the Korean government, through the Export-Import Bank of Korea or Korea Exim Bank, and the Department of Finance of the Philippines signed the agreement on October 29. 

The agreement was the third signed by the two countries under the USD1-billion EDCF Framework Arrangement for the years 2017 through 2022. The first was New Cebu International Container Port Project worth USD172.64 million and the second was Philippines-Korea Project Preparation Facility worth USD50 million.

The loan program aims to provide immediate financing or budgetary support to the recipient country for economic policies or implementation of sector development plans.

It also aims to “further strengthen relations between Korea and the Philippines in the field of public health and safety in addition to diverse areas of cooperation over the past 70 years”.

“It (the loan) may also take the form of an emergency relief fund for a pandemic situation like Covid-19. Due to Covid-19-related travel restrictions, the EDCF Covid-19 Emergency Response Program Loan agreement between the two governments were cross-signed by mail,” it added.

The EDCF was established by the Korean Government on June 1, 1987 with the purpose of promoting economic cooperation between Korea and developing countries.

Most EDCF projects in the Philippines have focused on infrastructure development, particularly roads and bridges, and the transportation sectors. (PR)

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