Beijing-based AIIB explores $ 300 million loan for PH
MANILA – Beijing-based multilateral development bank Asian Infrastructure Investment Bank (AIIB) is considering loans worth $ 300 million for the Philippines, AIIB President Jin Liqun said on Wednesday .
At the Association of Philippines-China Understanding (APCU) Virtual Forum in Manila, Jin said the new loan will fund the Philippine government’s Covid-19 vaccination program.
He added that in addition to financing the acquisition of the Covid-19 vaccines, the loan will be used for programs aimed at alleviating the adverse effects of global health and the economic crisis.
The AIIB approved a $ 750 million loan to the Philippines last year, which is co-financed by the Asian Development Bank, Jin said.
He added that this budget support has funded the increase in the testing capacity of Covid-19 in the Philippines, supporting vulnerable sectors, including agriculture and poor households, through conditional cash transfers and aid. emergency, and wage subsidies.
“In general, AIIB’s Covid19 assistance was aimed at vulnerable countries, vulnerable businesses and vulnerable people. This is why we are also aware of the financial health of our borrowers and their vulnerability to debt. We protect the well-being and financial viability of our members, ”said the AIIB executive.
Commenting on the debt trap issue, Jin said borrowing money from outside sources is not necessarily the source of a country’s debt problems.
“It wasn’t the borrowing that created the debt problems. It’s the use of the debt proceeds, it’s the use of the borrowed money that counts, that makes or breaks, ”he said. (PNA)