The Japan International Cooperation Agency (JICA) loan is part of Tokyo's 1.6 trillion-yen pledge to Asia in January to help the region through the global economic crisis, Philippine Finance Secretary Margarito Teves (left) said in a statement. --PHOTO: REUTERS
MANILA - JAPAN has extended a 9.3 billion yen (S$14.14 million) loan to the Philippines to help plug a rising budget deficit, the Filipino finance department said on Tuesday.
The Japan International Cooperation Agency (JICA) loan is part of Tokyo's 1.6 trillion-yen pledge to Asia in January to help the region through the global economic crisis, Philippine Finance Secretary Margarito Teves said in a statement.
It will help Manila finance critical infrastructure and social projects and programmes, he added.
The Philippines has pledged to increase government spending this year to help pick up the slack from reduced economic activity that is expected to cap economic growth at 4.4 per cent.
The increased spending would raise the budget deficit to 178 billion pesos (S$5.62 million), or 2.2 per cent of the gross domestic product (GDP).
The budget deficit rose to 67 billion pesos in the first two months of the year, more than double the figure at the same point last year, Mr Teves said on Monday.
The Asian Development Bank on Tuesday cut its 2009 economic growth forecast for the Philippines to 2.5 per cent and said the budget deficit could widen to about 2.5 per cent of GDP. -- AFP
