Monday, November 2, 2020

Korea Provides US$100-Million Loan for Philippines’ COVID-19 Emergency Response

 On Thursday, October 29, 2020, the Government of Korea (through the Export-Import Bank of Korea/Korea Eximbank) and the Government of the Philippines (through the Department of Finance)  have entered into an agreement for the EDCF COVID-19 Emergency Response Program Loan* worth USD 100 millionThis is the third agreement** signed by the two countries under the One Billion US Dollars (US$1,000,000,000) EDCF Framework Arrangement for the years 2017 through 2022.

 

*This particular type of program loan shall provide immediate financing/budgetary support to the recipient country for economic policies or implementation of sector development plans. It may also take the form of an emergency relief fund for a pandemic situation like COVID-19.

 

** First is New Cebu International Container Port Project(U$172,641,000), Second is Philippines-Korea Project Preparation Facility(U$50,000,000).

 

Due to COVID19-related travel restrictions, the EDCF COVID-19 Emergency Response Program Loan agreement between the two governments were cross-signed by mail.

 

This was the first and largest COVID19-related bilateral assistance offered by the Republic of Korea to a partner country, so far. The Korean Government, via the Korea Eximbank’s Economic Development Cooperation Fund (EDCF), has allotted a total of US540 million this year to help finance national COVID-19 responses in 14 developing countries.

 

Through this program loan, which is a type of budgetary support for policy establishment and implementation of COVID-19 response strategies, the Government of Korea expresses its solidarity with the Philippines and the international community in the ongoing global battle against coronavirus. It is also hoped that this will further strengthen relations between Korea and the Philippines in the field of public health and safety in addition to diverse areas of cooperation over the past 70 years.

 

About the Economic Development Cooperation Fund (EDCF)

 

Managed by the Korea Eximbank, the Economic Development Cooperation Fund (EDCF) was established by the Korean Government on June 1, 1987 with the purpose of promoting economic cooperation between Korea and developing countries.

 

Most EDCF projects in the Philippines have focused on infrastructure development, particularly roads and bridges, and the transportation sectors. The “EDCF COVID-19 Emergency Response Program Loan” helps further diversify the EDCF’s loan portfolio in the country; it is also particularly meaningful as, being the largest of its kind from Korea, it underscores the importance Korea places on its partnership with the Philippines.

 

Learn more about the work of EDCF here: https://www.edcfkorea.go.kr/site/main/index004

Keep up-to-date with EDCF activities in the Philippines via Facebook https://www.facebook.com/edcfphilippines

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