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PH to Re-Access $ 500 Million World Bank Disaster Line of Credit

The Ministry of Finance (DoF) said the government would once again have access to the World Bank’s $ 500 million (around P24.96 billion) loan line for the reconstruction of areas affected by typhoon “Odette “.

“Within a week, we will draw another 120 million dollars from the same loan facility from the World Bank, which is equivalent to 6 billion pesos to finance the rehabilitation and recovery efforts related to Odette,” said the deputy. -secretary of finance Bayani Agabin, reporting to President Rodrigo. Duterte.

According to the DoF, the World Bank last week granted an initial loan of $ 80 million (about P4 billion) to the Treasury Office.

Following the declaration of the state of calamity in various provinces affected by Odette, the Philippine government acceded to the World Bank’s 4th Disaster Risk Management Development Program with a catastrophic deferred withdrawal option (CAT-DDO4) .

CAT-DDO4 provides $ 500 million in emergency funding to address the financial effects of disasters and epidemics.

The Washington-based multilateral lender has said the country will be able to access funds if the government declares a state of calamity due to a natural disaster or announces a state of public health emergency.

Duterte placed six regions affected by Odette in a state of calamity.

CAT-DDO4 is part of the Philippines Insurance Strategy for Disaster Risk Financing, which aims to maintain sound fiscal health at the national level, develop sustainable financing mechanisms for local governments, and minimize impact on the poorest and most vulnerable.

According to Agabin, Secretary Carlos Dominguez 3rd and Office of Internal Revenue Commissioner Caesar Dulay released Income Regulation (RR) 22-2021, which extends the deadlines for filing and paying taxes in the six designated regions. as a state of calamity due to the typhoon.

These are the regions of Mimaropa (Mindoro, Marinduque, Romblon and Palawan), Western Visayas, Central Visayas, Eastern Visayas, Northern Mindanao and the Caraga region, which have been declared under a state of disaster. one year from December 21, 2021.

Under the RR, all December 2021 deadlines for filing and paying tax returns, filing tax refund claims (including for 12% value added tax [VAT] refunds), the processing of VAT refunds and the legal deadline for issuing tax notices and seizure and direct debit warrants were postponed by 30 days on various dates in January of this year.

“Commissioner Billy [Caesar Dulay] and Secretary Dominguez can extend this depending on the circumstances, ”Agabin said.


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