WB gives PHL $500-M loan for disasters

The World Bank has granted the Philippines a $500 million loan to fortify its disaster response and calamity relief operations. “This is a World Bank instrument or facility that provides immediate liquidity in the event of a national calamity, complementing the government's national and local calamity funds to cover expected and post-disaster expenses," BSP Governor Amando M. Tetangco Jr. said on Monday. According to a document posted on the World Bank's website describing the loan, the facility will enable the government to "focus on emergency response measures in the aftermath of a disaster, rather than spend valuable time and resources for fund-raising activities." The document noted that the loan is a single tranche operation which will allow for "multiple draw downs based on the trigger, which is the presidential declaration of a state of calamity." “Since the loan is intended to finance post disaster reconstruction efforts, disbursement amount and release date would be contingent on the extent of the catastrophe as well as the related damage," Tetangco said. The loan is structured as a 25-year facility with a five-year grace period, and may be implemented with a fixed or variable interest rate. There is, however, an upfront fee of 0.5 percent of the total loan amount. —JMT/VS, GMA News