The South Korean government has committed to providing $3 billion in infrastructure loans to the Philippines over the next four years as part of its efforts to support the economic development of its allies. The framework agreement for these loans was signed on December 21 as part of the South Korean government’s Economic Development Cooperation Fund, according to Foreign Secretary Enrique Manalo.
The $3 billion in concessional loans from South Korea will be used to fund infrastructure and road network developments in the Philippines from 2022 to 2026. According to Foreign Secretary Enrique Manalo, the amount of funding provided this year is three times larger than in previous years.
According to Foreign Secretary Enrique Manalo, South Korea is the sixth largest source of official development assistance (ODA) for the Philippines. The South Korean loan, which has a very low average interest rate of 0.15 percent and a lengthy grace period of 10 years and maturity period of 40 years, is almost equivalent to a grant, Manalo said.
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