Philippines, Spain firming up deal for 300 million euro loan facility

MANILA, Philippines — The Philippine and Spanish governments are firming up a deal which will allow Manila to access Madrid’s 300-million euro loan facility in implementing its infrastructure, agro-food and tourism projects, the Department of Finance (DOF) said yesterday.

The DOF’s International Finance Group (IFG), headed by Undersecretary Mark Dennis Joven, and the Spanish Embassy are currently finalizing the terms of the memorandum of understanding (MOU) for the deal.

Spain earlier offered to the Philippines its 300-million euro loan facility to support government projects in various sectors, such as infrastructure, energy, telecommunication, water treatment, solid waste treatment, agro-food, and tourism.

The proposed MOU will cover the mechanisms on how to access this facility.

In addition, Spanish Ambassador-Designate Jorge Moragas, in a recent meeting with the DOF, said the two countries are also planning to ink a MOU on economic and financial cooperation.

The agreement aims to further enhance the bilateral relations between Manila and Madrid through the creation of a joint intergovernmental committee, which will identify opportunities for cooperation in the fields of agriculture, transportation, infrastructure, disaster-risk finance, energy, and environmental economics.

The joint panel will be composed of representatives from both countries, to be co-chaired by an undersecretary of the National Economic and Development Authority (NEDA), and the secretary of state for trade from Spain’s Ministry of Economy, Industry and Competitiveness.

During the meeting with Moragas, Finance Secretary Carlos Dominguez said Spain and its companies are also welcome to take part in the 75 flagship projects under Duterte administration’s Build Build Build program, particularly in railway projects. 

Dominguez also thanked Spain for pledging last November $50 million (P2.619 billion) for the reconstruction and rehabilitation of the war-torn city of Marawi.

The pledged amount was on top of the technical assistance Spain had provided to government agencies in preparation for the Bangon Marawi Comprehensive Rehabilitation and Recovery Program (BMCRRPP).

According to the DOF, the country’s total bilateral trade with Spain has reached $652.32 million (or P33.99 billion) as of 2017.

Philippine exports to Spain in 2017 amounted to $212.2 million (or P11.05 billion), which is 16.2 percent higher than the previous year’s level. This made Spain the 26th largest market for Philippine exports

Meanwhile, the country’s total imports from Spain amounted to $440 million (or P22.930 billion) in 2017.