PH CAN TAP INDIA’S $1-B ASEAN LOAN FACILITY

India’s loan facility can be used for the development of digital infrastructure projects in the country

A $1-billion loan facility being offered by India to economies within the Association of Southeast Asian Nations (ASEAN) is available to the Philippines to help fund its “Build, Build, Build” program and digital connectivity projects.

In a recent meeting with Finance Secretary Carlos Dominguez III, Indian Ambassador to the Philippines Jaideep Mazumdar said his country will offer to the Philippines a credit line to this $1-billion loan facility.

At the same time, Ambassador Mazumdar said Indian companies remain bullish on the Philippines’ growth prospects and would want to expand their investments here, particularly in the infrastructure and pharmaceuticals sectors.

Dominguez said Indian companies are welcome to invest in the Philippines, especially in the areas of infrastructure and tourism.

The Finance chief said the Philippines is now in the process of improving its corporate tax system to make it simpler, fairer and more efficient, and thus attract more foreign direct investments (FDIs), especially in the “industries of the future” to which tax incentives would be granted to encourage them to set up shop here.

He also told the Ambassador that financial technology (fintech) is one other area that the Philippine government wants to tap and develop here to take advantage of digital innovations that would help expand the access of Filipinos to banking and insurance services and make electronic payment systems available to small and medium enterprises--in step with the Duterte administration’s goal of greater financial inclusion.

FDIs from India amounted to $8.61 million in 2017 (from $3.26 million in 2016). Key Indian investments in the Philippines are in textile and garments, information technology, steel, chemicals, automobiles, and pharmaceuticals.

Several Letters of Intent (LOIs) to invest in the Philippines were signed by Indian or Indian-affiliated companies during President Duterte’s visit to India last January. /