China-led AIIB OKs $750-M loan to Philippine virus response program

Beijing-based multilateral lender Asian Infrastructure Investment Bank (AIIB) on Friday announced that it has approved a $750-million loan to the Philippines to support the country’s response efforts against the COVID-19 pandemic and its lingering economic impact.

In a statement, AIIB said the fund support is co-financed with the Asian Development Bank (ADB).

Also, the AIIB said the money is intended to boost the Philippine government’s “testing capacity, bolstering vulnerable sectors (including agriculture), and providing conditional cash transfers and emergency assistance to poor households.”

AIIB vice president for Investment Operations D.J. Pandian said, “The focus of our efforts is to help the government tackle the immediate health and economic challenges posed by the pandemic," and towards "building economic resilience and ensuring quick recovery.”

Moreover, the $750-million loan for the Philippines’ COVID-19 Response and Expenditure Support (CARES) program will provide fund support for government’s efforts to mitigate the severe health, social, and economic impact caused by the pandemic.

According to the AIIB, the Philippines is one of the first developing countries globally and the first in Southeast Asia to have introduced strict quarantine measures to limit the spread of the disease.

Finally, the AIIB said the lockdown measures are expected to take a heavy toll on the country’s economic growth with the International Monetary Fund estimating that gross domestic product could see a sharp contraction from 6.2% to 0.6% for 2020. —LBG, GMA News