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