Gov’t inks $150-M loan to fund budget

MANILA, Philippines - The government has signed a $150-million loan agreement to partly fund this year’s general budget requirements particularly for fiscal centralization reform program. 

In a statement, the Department of Finance said the loan was obtained from Agence Française de Développement (AFD), a French development finance institution.

Finance Secretary Cesar V. Purisima signed the agreement with French Ambassador Gilles Garachon and AFD Country Director Luc Le Cabellec in the presence of European Ambassador Guy Ledoux and National Treasurer Rosalia V. De Leon.

The European Union is extending about P300 million (4.8 million euro) worth of grants to strengthen the national Disaster Preparedness Audit (DPA) framework to be implemented by the Department of Interior and Local Government. This project aims to improve local government performance in institutionalizing disaster preparedness policies and monitoring disaster preparedness response, and strengthen the public finance management at the local level.

Purisima expressed his appreciation to the French government and the European Union for their valuable and unwavering support to the Philippines, particularly in the achievement of the inclusive growth agenda of the Aquino Administration and in the relief and reconstruction efforts of the government in the areas affected by Typhoon Yolanda.

Ambassador Ledoux said “the provisions of this technical assistance reflect, the timely and coordinated assistance that the EU and AFD can jointly provide to the Philippine government to implement disaster risk reduction and management policies. The EU grant will complement emergency contributions of the European Union and its member states for reconstruction in the wake of Typhoon Yolanda.”