During President Rodrigo Duterte’s trip to Japan, the Philippine government secured a multi-billion-peso loan
Japan said it would extend a $157-million (16.4-billion yen) loan to help boost the Philippines’ maritime security as both countries agreed to elevate their ties to a “level higher than before” amid China’s growing influence in the region.
The Japan International Cooperation Agency (JICA) agreed to loan the Philippines 16.5 billion yen (PHP 6.8 billion, USD 157 million) for the acquisition of two 94-meter large-scale patrol vessels.
The rest of the loan will fund an agribusiness project for the Autonomous Region in Muslim Mindanao, the ministry said.
The concessional loan has an interest rate of between 0.01% and 0.10% with a maturity period of 40 years, inclusive of a 10-year grace period, according to the Department of Finance (DOF).
“Both Japan and the Philippines are maritime nations and support to enhance maritime safety capability will be strengthened,” said Japanese Prime Minister Shinzo Abe, who witnessed the signing of the agreements following a bilateral meeting with President Rodrigo Duterte on Wednesday.
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