THE Indian government has reiterated its concessional line of credit offer to help the Philippines fund its defense modernization program.
The offer was floated anew during the 5th India-Philippines Joint Commission on Bilateral Cooperation (JCBC) led by Foreign Affairs Secretary Enrique Manalo and his counterpart Indian Minister of External Affairs S. Jaishankar on June 29 in New Delhi.
“On defense cooperation, both ministers expressed keen interest to continue to work together in this sector, including through the regular or upgraded official level interaction among defense agencies, opening of the resident Defense Attaché office in Manila, consideration of India’s offer for concessional Line of Credit to meet Philippines’ defense requirements, acquisition of naval assets, and expansion of training and joint exercises on maritime security and disaster response, among others,” the joint statement read.
The line of credit being offered by India is a soft loan provided on concessional interest rates to developing countries based on the national priorities of the borrowing countries.
In a text message, India Ambassador to the Philippines Shambhu Kumaran said the broad terms of the Export-Import Bank of India (EXIM Bank) line credits are 1.75 percent, with a 20-year tenor and five-year moratorium.
“There is no specific amount indicated at present, it will depend on the requirements of the Philippines side,” he said.
“The offer was first made when (former) Defense Secretary Delfin Lorenzana visited India in 2018, and reiterated today,” he added.
The ongoing Armed Forces of the Philippines modernization program is now on Horizon 3, which is slated for 2023 to 2028.
Earlier, President Ferdinand R. Marcos Jr. reaffirmed his commitment to beef up the country’s defense capabilities, saying the Horizon 3 is “significantly devoted to the naval aspect” of the military operations.
Meanwhile, Manalo and Jaishankar emphasized the importance of maritime domain awareness and called for the early operationalization of the Standard Operating Procedure for the White Shipping Agreement between the Indian Navy and the Philippines Coast Guard (PCG). (PNA)/PN
