□ On August 7th, Chairman Yoon met with Philippines Finance Minister Ralph G. Recto in Manila and signed the Economic Development Cooperation Fund (EDCF) Loan Agreement.
* The Economic Development Cooperation Fund (EDCF) : Korea Eximbank has been entrusted by the Ministry of Economy and Finance to operate and manage the fund for developing countries since 1987. It provides long-term, low-interest loans to support industrial development and economic stability in developing countries, and promotes economic exchanges between developing countries and Korea.
□ The New Dumaguete Airport project aims to build a new airport in the Philippines’ Central Visayas region, capable of handling two million passengers annually. This marks the largest project ever funded by EDCF in the Philippines.
о As the third airport project supported by EDCF in the Philippines, following Puerto Princesa and Laguindingan airports, it is expected to create further opportunities for Korean companies seeking to enter related fields in the Philippines, where air travel demand is high.
□ Furthermore, Chairman Yoon signed a Cooperation Agreement to provide the Philippines with $3 billion financial support through the Economic Development Promotion Fund (EDPF) over the next five years.
* The Economic Development Promotion Facility (EDPF) : It is a type of aid fund that provides long-term, low-interest loans for large-scale infrastructure projects in developing countries. EDPF offers loans at interest rates lower than the borrowing cost of Korea Eximbank, with the difference between the borrowing cost and the interest rate provided being covered by government funds (the Economic Development Cooperation Fund).
о The signing of the Cooperation Arrangement allows both countries to focus on identifying promising candidate projects now that the funding limit and period are pre-established.
□ Following the signing ceremony of the Loan Agreement and Cooperation Arrangement, Chairman Yoon emphasized Korea Eximbank’s strong partnership with the Philippines. He noted, “The Philippines, a key partner country for Korea’s Official Development Assistance (ODA), has received a total of $16.2 billion in support through EDCF for 25 projects, ranking them fourth among all recipient countries.”
о He added, “The Loan Agreement and Cooperation Agreement will facilitate the leveraging of blended finance for landmark projects in the Philippines, such as new airports and sea bridges. This will pave the way for Korean companies to penetrate large-scale infrastructure construction markets.”
