Central Bank of the Philippines gives green light to $500M ADB loan for typhoon rehabilitation
Bangko Sentral ng Pilipinas (BSP) has approved in principle a USD500 million loan to be provided by the Asian Development Bank (ADB). The said loan will be used for the rehabilitation and reconstruction of communities devastated by Typhoon Haiyan.
A report by news website Interaksyon said the Monetary Board on Thursday approved the emergency assistance from ADB. The Monetary Board is BSP's policy-making body. However, the loan terms are still subject for negotiation. The loan has a maturity of 32 years and an eight-year grace period, the report said.
Interaksyon said a BSP clearance is required for foreign-currency loan to ensure that the country has ample foreign exchange to service these liabilities.
According to the report, the Philippine government requires PHP40.9 billion for the rehabilitation and reconstruction of areas damaged by the super typhoon. 67% of the said funds will be allocated to shelter and public infrastructure, including roads, bridges, airports, ports and other facilities.