Spain provides €300-million credit facility for infrastructure, tourism

THE PHILIPPINE AND SPANISH governments signed an agreement for a 300-million euro credit facility to fund infrastructure and tourism projects

In a statement on Wednesday, the Department of Finance (DoF) said that Finance Secretary Carlos G. Dominguez III met with Spanish Ambassador-Designate Jorge Moragas in December in Manila.

“Finance Secretary Carlos Dominguez III welcomed Spain’s offer of a financing facility of up to 300 million euros to support government projects in the areas of infrastructure, agri-food and tourism,” it said.

“Spanish Ambassador-Designate Jorge Moragas informed Mr. Dominguez during their recent meeting about the proposed memorandum of understanding (MoU) on the mechanisms involving this 300-million euro facility and another agreement on economic and financial cooperation between Manila and Madrid,” it added.

Talks for the credit facility with Spain began late 2017.

The agreement will create a Joint Intergovernmental Committee that will identify opportunities for partnerships in agriculture, transportation, basic infrastructure, disaster-risk financing, energy, and the environment.

It will also explore possible projects in energy, telecommunication, water treatment, and solid waste treatment.

The DoF said that the MOU is “currently being finalized” by the Spanish Embassy and the DoF’s International Finance Group (IFG) headed by Undersecretary Mark Dennis Y.C. Joven.

The joint panel will be cochaired by an undersecretary of the National Economic and Development Authority (NEDA) and the Secretary of State of Trade of the Ministry of Economy, Industry and Competitiveness of Spain, with a representative from the Department of Finance (DoF) as member.

Philippine exports to Spain hit $212.2 million in 2017, up 16.2%. Spain is the 26th top export destination for Philippine products.

Imports from Spain meanwhile amounted to $440 million in 2017. —