Thursday, August 6, 2026

PH and Japan sign JPY 30 billion loan agreement to strengthen universal health care

Ambassador of Japan to the Philippines ENDO Kazuya and Department of Foreign Affairs (DFA) Secretary Maria Theresa P. Lazaro signed an Exchange of Notes for the Build Universal Health Care Program (Emergency Support).

Under the agreement, the Government of Japan will provide a official development assistance (ODA) loan of up to 30 billion yen (approx. USD 200 million) to support the Philippines in accelerating health policy reforms, expanding equitable healthcare access, and shielding the domestic health sector from external shocks, including rising global supply chain tensions stemming from Middle East conflicts.

The loan program is designed to deliver immediate financial support while laying the groundwork for long-term health and economic stability:

  • Expanding Equitable Health Access: Enhances high-quality health services across rural and urban communities to advance the country’s Universal Health Care (UHC) targets.

  • Securing Medical Supply Chains: Strengthens procurement and logistical networks for essential drugs and medical equipment to ensure uninterrupted delivery.

  • Economic & Financial Stability: Cushions public finances against health-related external shocks, promoting steady social and economic growth.

  • Fostering a Stronger Investment Climate: Directly benefits the domestic market and supports the operating environment for over 1,630 Japanese companies established in the Philippines, fostering deeper economic co-prosperity.

Parameter Details
Total Loan Limit JPY 30 Billion (~USD 200 Million)
Interest Rate 2.50% per annum
Repayment Period 15 years (includes a 5-year grace period)
Financing Terms Untied

“Through this initiative, Japan reaffirms its steadfast commitment to the Philippines’ sustainable development. Strengthening health systems not only protects lives during global uncertainties but also builds the foundation for long-term economic resilience and mutual prosperity,” said Ambassador Kazuya.

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