Beijing-Backed AIIB Approves USD750m Pandemic-Related Loan for Philippines

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Asia Infrastructure Investment Bank (AIIB) announced on May 29 that it has approved a USD750m pandemic-related loan for the Philippines, as reported by Reuter on the same day. The loan is co-funded by the Asian Development Bank and will be used to support Philippines’ affected market sectors such as a agriculture, fund a wage subsidy program for over 1m SMEs in addition to providing assistance for low-income households and increase the country’s coronavirus testing capacity.

The announcement comes after on May 21, the AIIB approved a USD250m coronavirus-related loan for Bangladesh and is part of its USD10bn coronavirus lending facility targeted at providing financial support for member countries impacted by the pandemic. To date, over 20 member countries have requested support from the bank among which China was among the first to receive approval. In early April, AIIB approved a USD355m emergency loan to China to help improve its public health infrastructure and capacity to handle the pandemic. Its most recent project approvals under the COVID-19 lending facility include a EUR91.34m loan to Georgia, a USD750m to Indonesia for active response and expenditure and support, in addition to a USD500m loan to India for emergency response and healthcare system preparedness projects. All the loans have been co-funded by the Asia Development Bank.

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