Finance Secretary Frederick D. Go said the Philippines is targeting to sign 11 additional loan agreements with Japan with an estimated total of JPY371.31 billion, approximately USD2.41 billion, during the Japanese Fiscal Year 2026.
This is on top of the three critical loan agreements with the Japan International Cooperation Agency (JICA) for a total value of JPY243.31 billion, roughly USD1.58 billion, to be signed as Japan concludes Fiscal Year 2025 this March.
Go announced the new yen loan deals for the country’s priority infrastructure projects during the 42nd Annual Joint Meeting of the Economic Cooperation Committees of the Philippines and Japan held Thursday in Manila.
“This reflects continued alignment between our infrastructure priorities and Japan’s development support,” said the finance chief.
Since the start of President Marcos Jr.’s administration, twelve loan agreements have already been signed, amounting to JPY 910.38 billion, or approximately USD5.92 billion. These projects are now moving from commitment to implementation.
“All these figures speak volumes. They reflect trust in the Philippines’
economic direction, confidence in our institutions, and a shared belief in long-term partnership. This is good news. It reflects sustained growth, macroeconomic stability, and structural reforms,” he said.
Secretary Go cited the infrastructure projects being bankrolled by the Japanese government to include the Metro Rail Transit Line 3 Rehabilitation, Metro Manila Subway, and the Central Mindanao Highway.
The Metro Manila Subway is the country’s first-ever underground railway system. It will transform urban mobility, reduce congestion costs, and unlock economic potential across our capital region.
The Central Mindanao Highway will connect communities, enhance agricultural logistics, and stimulate regional development in Mindanao.
“Each project reflects Japan’s reputation for quality infrastructure—durable, efficient, and future-ready. And each project reflects the Philippines’ determination to build better, faster, and smarter,” he said.
Today, Japan remains to be the Philippines’ largest provider of Official Development Assistance.
As of December 2025, total loan and grant commitments amount to approximately USD13.96 billion—representing 33.54 percent of the Philippines total ODA portfolio.
Japan is also the Philippines largest ODA loan provider, accounting for USD13.65 billion, or 34.44 percent of total ODA loans. And it is also the Philippines third largest ODA grant provider, with USD307.97 million, or 15.60 percent of total ODA grants.
He cited the Japanese government for enabling these capital to help build ecosystems for the Philippines.
With that, the finance chief assured both the Japanese and Filipino businessmen present that the long term fundamentals of the Philippine economy remain intact and on solid footing – strong GDP growth, manageable inflation, a robust labor market, and prudent fiscal management.
Even with the extraordinary challenges in the second half – external shocks, war, tariffs, natural calamities, and the President’s flood control exposé – growth moderated to 4.4 percent for the year, but still well above the global average of 2.9 percent.
Leading multilateral institutions like Asian Development Bank and the World Bank also forecast the Philippines to regain momentum and bounce back to a 5 percent level of growth or higher this year.
Good economic indicators include a controlled inflation and general government debt of 53.88 percent, which is way below the 70 percent international threshold for general government debt-to-gdp ratio.
At the same time, he said, the three pillars of growth remain solid and reliable.
In 2025, remittances from Overseas Filipinos totaled 35.63 billion USD. Export revenues in 2024 reached 106.7 billion USD and the business process outsourcing sector generated 32.3 billion USD.
“Together, these pillars continue to anchor the resilience and momentum of the Philippine economy,” Secretary Go said.
