The Philippines and Japan inked on Tuesday the exchange of notes formalizing the JPY30 billion or about PHP11.79 billion post disaster standby loan for Manila.

The Post Disaster Standby Loan Phase 3 (PDSL 3) seeks to provide quick-disbursing budgetary support for the Philippines’ calamity response programs for swift recovery in the aftermath of natural and health-related disasters

Foreign Affairs Secretary Enrique Manalo and Japanese Ambassador Kazuhiko Koshikawa signed the document during a ceremony at the Department of Foreign Affairs (DFA) in Pasay.

“This is the third PDSL to be provided for the Philippines: first in 2013 to support the recovery from Typhoon Yolanda, and then in 2020 for the Covid-19 (coronavirus disease 2019) pandemic response. With Typhoon Egay having attacked the Philippines just last month, it is evident that our countries are frequently exposed to natural disasters such as typhoons, earthquakes, and volcanic eruptions,” Koshikawa said.

“Given our two countries’ similar topographies, I would like to emphasize that Japan will continue to support through various ways the Philippines’ nation building and resiliency efforts, along with security enhancements, as we both strive to build back better societies,” he added.

Under highly concessional terms, the loan’s repayment period is set to 30 years after a grace period of 10 years, with a fixed interest rate of 0.01 percent per annum.

The Japanese government started this budgetary support in 2013, helping Filipino families recover lost income and rebuild their lives from the devastating effects of Typhoon Yolanda, the Japanese Embassy said.

In 2020, Japan extended anew this financial support to augment government coffers as the Philippines rolled out its recovery efforts from the Covid-19 pandemic. (PNA)