Korea extends $100 million loan for COVID-19 response

MANILA, Philippines — The Export-Import Bank of Korea (Korea Eximbank) has extended $100 million in loans to the Philippines to support the country’s COVID-19 response efforts.

In a statement, Korea Eximbank said it has signed a loan agreement with the Philippine government under the Economic Development Cooperation Fund (EDCF) COVID-19 Emergency Response Program.

The bank said this was the first and largest COVID-19-related bilateral assistance offered by South Korea to a partner country so far.

“Through this program loan, which is a type of budgetary support for policy establishment and implementation of COVID-19 response strategies, South Korea expresses its solidarity with the Philippines and the international community in the ongoing global battle against coronavirus,” Korea Eximbank said.

“It is also hoped that this will further strengthen relations between Korea and the Philippines in the field of public health and safety in addition to diverse areas of cooperation over the past 70 years,” it said.

Korea Eximbank established the $1 billion EDCF Framework Arrangement to provide immediate financing or budgetary support to other countries for their economic policies or implementation of sector development plans.

Under the framework, South Korea allotted a total of $540 million this year to help finance COVID-19 response efforts in 14 developing countries.

According to the Korea Eximbank, this was also the third agreement signed by Manila and Seoul under the EDCF Framework from 2017 until 2022.