The country’s loan portfolio performance significantly improved in 2019, indicating better absorptive capacity by the economy to process and use the financing, acting Socioeconomic Planning Secretary Karl Kendrick Chua said.
“The recent loan portfolio performance showed improvements the past two years. For 2019, all indicators of absorptive capacity improved,” Chua said.
Latest data from the National Economic and Development Authority (NEDA) show a six percentage-point increase in the country’s rate of contracting project loans to 64 percent in 2019 from only 58 percent a year ago.
According to the agency, the bulk or 92 percent of the portfolio consisted of 84 loans worth $19.98 billion and the remaining eight percent were 268 grants collectively worth $1.64 billion.
By country source, Japan remained the top provider of official development assistance or ODA to the Philippines, taking the lion’s share of 39 percent or $8.51 billion worth of the country’s active ODA portfolio.
Infrastructure development received the largest share of ODA loans with more than half or 58 percent of the overall portfolio, followed by social reform and community development sector, with 18 percent.
The other sectors including agriculture, industry and trade accounted for the remaining 24 percent.
“The overall disbursement level of the loans portfolio increased by 21 percent from $2.23 billion in 2018 to $2.71 billion in 2019 while the disbursement rate of the project loans portfolio increased to 64 percent in 2019 from 58 percent in 2018,” NEDA said.