A total of $17.06 billion in affordable financing from external sources in 2020 has been contracted by the government for key infrastructure projects and other priority programs, and for helping bridge the wider fiscal deficit incurred last year because of the huge state spending on the coronavirus disease 2019 (Covid-19) response measures.
The Department of Finance (DOF) led by its International Finance Group (IFG) secured $D7.73 billion or 45.3 percent of this amount from multilateral lenders, $2.86 billion (16.7 percent) from the Philippines’ bilateral partners, and $6.47 billion (37.9 percent) from the commercial markets.
The continued provision last year of program loans from the Philippines’ bilateral and multilateral partners is “a testament to the timely delivery of our key sectoral reforms,” said Finance Undersecretary Mark Dennis Joven in his report to Finance Secretary Carlos Dominguez III.
“Out of the total external financing contracted in 2020, around $15.44 billion is for the emergency requirements for our Covid-19 response, while the remaining $1.62 billion is for other initiatives including ‘Build, Build, Build’ infrastructure projects,” said Joven, who heads the DOF-IFG.
Joven said $14.52 billion in budget support financing was contracted by the DOF in 2020 to help cover the deficit of P1.38 trillion ($27.81 billion or 7.6 percent of GDP or gross domestic product) resulting from the expected reduced collections of revenue agencies and the massive spending requirements of Covid-19 response programs.
Photo by PNA