DOF takes out loan payable until 2053

The Philippines will repay its latest $700-million (over P39-billion) World Bank loan, which is aimed at strengthening community resilience, until 2053.

- BEN ARNOLD DE VERA

The latest World Bank documents showed that Finance Secretary Ralph G. Recto, on behalf of the Philippine government, signed the loan agreement for the Philippines Community Resilience Project-Pagkilos on Monday, Sept. 8.

Zafer Mustafaoglu, division director for the Philippines, Malaysia and Brunei, signed the same agreement on behalf of the Washington-based multilateral lender last Aug. 12.

As both sides have already signed the loan agreement, this financing will take effect in three months’ time.

The five-year loan, which closes on Dec. 31, 2030, will be repaid every June 1 and Dec. 1 starting the year 2036.

The World Bank financing accounted for the bulk of the total project cost amounting to $874.35 million (over P49 billion), with the remaining $174.35 million (nearly P10 billion) to be funded by the Philippine government.