PH gets $150 million ODA loan from France

Posted at 04/23/14 3:56 PM

MANILA, Philippines - The Philippine government has recently obtained a $150 million (P6.7 billion) overseas development assistance (ODA) loan from the French Development Agency (AFD).

Finance Secretary Cesar V. Purisima signed the agreement with French Ambassador Gilles Garachon and AFD Country Director Luc Le Cabellec.

The loan will partially finance the 2014 general budget requirements of the National Government under the framework of the Local Government Finance and Fiscal Decentralization Reform Program, which is also being co-financed by the Asian Development Bank (ADB).

The French government, through the AFD, provided the highly concessional loan in recognition of the Philippines' efforts in decentralization reforms.

"This loan agreement materializes four years of AFD’s full dedication and commitment to assist the Government in achieving its inclusive growth strategy. Thanks to this important step for the France-Philippines cooperation, AFD is expecting to further enhance its strategic partnership with the Government of the Philippines on the occasion of forthcoming bilateral consultations and in the prospects for the most expected official visit of President Aquino to France," Garachon said.

The European Union will be supporting the process through a 4.8 million euro (P300 million) grant to strengthen the national Disaster Preparedness Audit (DPA) framework to be implemented by Department of Interior and Local Government.

EU Ambassador Guy Ledoux said "the provisions of this technical assistance reflect, the timely and coordinated assistance that the EU and AFD can jointly provide to the Philippine Government to implement disaster risk reduction and management policies. The EU grant will complement emergency contributions of the European Union and its Member States for reconstruction in the wake of typhoon Yolanda (P10 billion)”.