PHL inks $300-M AIIB loan to buy Covid-19 vaccines

The balance of P11.6 billion will be sourced from savings and other arrangements with the Philippines’s bilateral or multilateral partners through official development assistance financing.

Joven also told Businessmirror that they do not see the need yet to tap the $100 million (roughly P4.8 billion) earmarked for Covid-19 vaccine purchase.

“No need yet. It’s for standby once we deplete the $1.2 [billion],” Joven said.

As for the remaining P12.5 billion, P10 billion will be sourced from funds allocated for the Covid-19 vaccination program under Republic Act (RA) 11494 or the Bayanihan To Recover As One Act (Bayanihan 2) while P2.5 billion already forms part of the budget of the Department of Health under the 2021 national budget.

As of March 17 this year, the government has so far secured $14.29 billion in loans and grants from foreign lenders for its Covid-19 response, based on the list provided on the DOF web site.

However, the DOF pointed out that the “figures are rebased to reflect 2020 average exchange rates.”

The DOF list also did not yet include $1.2-billion loans that the government recently secured for vaccine purchase. According to Joven, debt secured to support the budget related to the government’s Covid-19 response should be differentiated from the debt specifically secured for vaccines.

“Budget suppor t loans go to the Treasur y and get spent in the manner provided by the GAA [General Appropriations Act]. Vaccine project loans are paid directly to the supplier and does not come under the control of the Treasury,” Joven told the Businessmirror.

The finance official also explained that there was a need to rebase the amount of financing for the government’s Covid-19 response listed on the web site since the “drawdown is not one-time and functional currency is in pesos.”