Japan cancels $284m in loans to the RP

Japan cancels $284m in loans to the RP

MANILA: Japan has agreed to cancel 16 billion pesos (US$284.2 million) in development loans to the Philippines due to a lack of counterpart funds from Manila, a presidential spokesman said on Tuesday.

The decision was "by mutual agreement, not a unilateral action" by either side, Ignacio Bunye said.

He said that canceling the unused loans would actually speed up other forms of development assistance from Japan.

The loans from the Japan Bank for International Cooperation were originally to have gone to six infrastructure projects in the Philippines but a lack of matching local funds meant that the facility was never fully used.

Newspaper reports also said that loans for 11 other projects would be reduced.-- AFP