DOF: P29 billion standby credit ready for state of calamity

MANILA, Philippines —  The Department of Finance (DOF) is ready to tap P29 billion ($500 million) in standby credit to assist in disaster relief as Typhoon Carina and monsoon rains battered Metro Manila and nearby provinces.

In a statement, Finance Secretary Ralph Recto said the Philippines can access the standby credit line extended to the Philippines by Washington-based multilateral lender World Bank.

This will help support the government’s disaster relief and rehabilitation efforts in areas ravaged by Typhoon Carina.

“These funds will be immediately withdrawn and released once the President declares a state of calamity,” Recto said.

“This will allow us to deliver critical services like healthcare, shelter and food to those affected, as well as fund post-disaster emergency response, recovery and reconstruction efforts,” he said.

A state of calamity was declared yesterday in Metro Manila amid massive flooding.

The funding will come from the World Bank’s Philippines Disaster Risk Management and Climate Development Policy Loan with a Catastrophe-Deferred Drawdown Option (CAT-DDO5).

This gives the government immediate access to funds in order to manage risks arising from climate change, natural disasters and disease outbreaks.

A presidential declaration of a state of calamity or a public health emergency is required to trigger the release of the funds.

The CAT-DDO5 forms part of the Philippines’ Disaster Risk Financing Insurance strategy, which aims to maintain sound fiscal health at the national level, develop sustainable financing mechanisms for local government units and reduce the impact on the poorest and most vulnerable.