Philippines to return ‘excess’ $320M pandemic loan to World Bank —Diokno

The Philippines is set to return to the World Bank about $320 million in excess loans for the country's COVID-19 pandemic response, according to Finance Secretary Benjamin Diokno.

“Mga $320 million, ‘yung excess sa pandemic,” Diokno told reporters during his weekly chat with the Finance press corps.

“Ang advice ng World Bank isauli na lang, then come up with a new program,” the Finance chief said.

The previous administration embarked on an aggressive borrowing spree to boost the state’s war chest to respond to the COVID-19 pandemic.

The ramped-up borrowing spree bloated the country’s debt-to-gross domestic ratio—the size of the state’s debt relative to the size of the economy—to 63.5%, the highest in 17 years and well over the internationally recommended threshold of 60%.

Diokno said the “excess” loans were supposed to be used to procure vaccines.

“Pambili sana ng vaccine. [Pero] marami nag-donate sa atin ng vaccine,” he said.

The Finance chief said his department has already written to the World Bank about the government’s intent to return the excess loans.

“We’ve written already. Soon, within the month,” Diokno said. — BM, GMA Integrated News