THE government is still negotiating for a $1-billion loan to combat the ongoing spread of coronavirus disease 2019 (Covid-19), Finance Secretary Carlos G. Dominguez III said.
Dominguez disclosed this on Tuesday, while noting that about half — P14 billion out of P27.1 billion, or the bulk of the economic package rolled out by the government separately from the money still being sourced from the unidentified foreign lender –v will go to tourism as it is the “hardest hit sector.”
To support the tourism industry, the largest chunk of the package will go to the the programs and projects of the Department of Tourism (DOT) amounting to P14 billion from the Tourism Infrastructure and Enterprise Zone Authority (Tieza).
Asked why the biggest share of the economic package went to the tourism sector and only P3.1 billion was set aside for direct efforts to stop the spread of Covid-19, Dominguez said in a message shared to reporters: “Because as of now the tourism sector is the most affected. Besides, our negotiations for US$1-B loans for combating Covid still in process.”
However, the finance chief refused to identify the specific lender that the government is currently negotiating with.
Under the economic package, the smallest allocation was P1 billion for the Department of Trade and Industry (DTI) for its Pondo sa Pagbabago at Pag-Asenso (P3) Microfinancing special loan package of the Small Business Corp. (SBC). This is for affected micro entrepreneurs/micro, small and medium enterprises (MSMEs).
The package also consists of P3.1 billion to contribute directly to efforts to stop the spread of Covid-19, including the acquisition of test kits. The Department of Finance said these funds came from the Philippine Amusement and Gaming Corp. (Pagcor), Philippine Charity Sweepstakes Office (PCSO) and the Asian Development Bank (ADB).
The list also includes P3 billion for the Technical Education and Skills Development Authority (Tesda)’s Scholarship Programs to support the upskilling and reskilling of affected and temporarily displaced workers and the P2.8 billion for the Survival and Recovery (SURE) Aid Program of the Department of Agriculture-Agricultural Credit Policy Council (DA-ACPC), which provides loans of up to P25,000 each at zero interest for smallholder farmers and fisherfolk affected by calamity and disasters.
For his part, Budget Secretary Wendel E. Avisado also assured the public on Tuesday there will be a continued release of funds amid the declaration of enhanced community quarantine in the entire Luzon.
“This situation calls for the cooperation and partnership of both the government and the private sectors in addressing the current emergency and its impending effects and consequences. Therefore, the DBM (Department of Budget and Management) will ensure the continued release of funds for the requirements of the government, especially for the Department of Health to address the Covid-19 situation and other urgent health concerns, funds for our infrastructure projects under the Build Build Build Program, and funds for the peace and order requirements of the Armed Forces of the Philippines, the Philippine National Police, and the Philippine Coast Guard, among others,” Avisado said in a statement.
PhilHealth’s P30 billion
In a related development, state health insurer Philippine Health Insurance Corporation (PhilHealth) said it will also release an initial P30 billion to accredited hospitals to help them stop the ongoing spread of Covid-19 in the country.
PhilHealth on Tuesday said in a statement the amount, which will be charged to the hospitals’ future claims, is equivalent to three months’ worth of claims based on historical data.
“Hospitals will be asked to submit a letter of intent to avail of the mechanism. This will include including those facing sanctions for various violations of their contracts with the national health insurer,” PhilHealth said in a statement. “The arrangement is also part of PhilHealth’s efforts to reduce return-to-hospital payables filed in 2019 and earlier, and to further increase payments to hospitals.”
Moreover, PhilHealth also said it will also provide its members and service partners with additional relief by extending the deadline of payment of contributions for its self-paying direct contributors.
Instead of March 31, 2020, they can pay their first-quarter contributions on or before April 30, 2020.
The policy on single period of confinement and 45-days coverage are also waived in favor of the member, while the filing period for claims is also extended from the usual 60 days to at least 120 days in favor of health care providers.
PCSO giving P1-billion more
Meanwhile, PCSO on Tuesday announced it will be contributing an additional P1 billion to the government to stop the spread of Covid-19.
PCSO Assistant General Manager for Gaming Arnel Casas said this would be on top of the P420-million contribution by PCSO, as announced earlier.
In a press conference, PCSO General Manager Royina Garma said they sourced the additional P1 billion from the shortfall collected from Small Town Lottery last year.
At the same time, PCSO announced the suspension of all gaming activities in Luzon while the island is under enhanced community quarantine.
Despite the suspension of the games, Garma also assured the public that PCSO can sustain its medical assistance program.
Image credits: Nonie Reyes