SEOUL– South Korea said Tuesday it will seek to triple the ceiling on Seoul’s low-interest rate loans to the Philippines over the next five years in an effort to strengthen bilateral cooperation.
Under the agreement between the two nations, the Economic Development Cooperation Fund (EDCF) will be expanded up to US$3 billion in 2022-2026 from $1 billion set aside for 2017-2022, according to the Ministry of Economy and Finance.
South Korea launched the EDCF program in 1987 in an effort to help other developing countries with their basic infrastructure. The expansion came as the Philippines is positioned as a key strategic country in terms of Korea’s signature New Southern Policy, and the two nations have deepened cooperation in the green energy, digital and health care sectors.
The ministry said the country also seeks to provide $200 million in emergency loans to the Philippines to help it cope with the COVID-19 pandemic. It follows the $100 million South Korea provided last year.
Source: Yonhap News Agency