THE Philippine government has managed to borrow a whopping $18.4 billion from external sources covering the first 12 months that the country has struggled amid the onslaught of the deadly virus from Wuhan, China.
At the Laging Handa briefing, Finance Undersecretary Mark Dennis Joven said that the amount, which is equivalent to P886.5 billion, came in the form of loans – bilateral, multilateral and commercial sources — and used to address the continuing crisis triggered by the global pandemic.
“As of April 28 2021, nakautang tayo ng a total of $18.4 billion from external sources,” Joven said during the televised briefing.
Of this figure, Joven said $16.26 billion was used as budget support, while $2.14 for project financing.
“When we say budget support, it is to augment the national budget to spend for all regular programs under the national budget,” he said.
“For project finance, it means we borrow money for a particular project,” he added.
Interestingly, $6.93 billion of the $16.26-billion budget support came from the Asian Development Bank, World Bank, and Asian Infrastructure Investment Bank. $1.32 billion has been secured through bilateral sources which include Japan, Korea, and France.
For commercial sources, around $8 billion has been secured from the government’s fund-raising efforts through the sale of foreign currency-denominated bonds.
There is, however, no reason to be pressured, says Joven, who claimed that the payment period for the COVID-19-related foreign loans are spread in multiple years.
Asked what he meant by multiple years, he said — “going beyond a decade or two.”
Joven further averred that borrowing money was necessary since tax revenues are declining due to the slowdown in economic activities amid strict lockdowns.