NEDA says US aid suspension has minimal impact

The National Economic Development Authority (NEDA) has played down concerns over the impact of US President Donald Trump's temporary suspension of foreign assistance on the Philippines.

NEDA Secretary Arsenio Balisacan stated that while the US is a significant source of grants, its suspension would have minimal direct effects due to loans from other countries and multilateral institutions.

Balisacan noted that foreign aid from the US constitutes only a small portion of the Philippine economy and emphasized that major infrastructure projects are primarily funded by Japan, Korea, and international lenders like the World Bank and ADB.

The suspension involves halting both existing and new foreign assistance for 100 days to review aid distribution efficiency with broader policy goals, according to a US State Department memo signed on Friday.

Mr. Balisacan also noted that the Philippines' flagship infrastructure projects would not be significantly impacted as they are largely funded by countries like Japan, Korea, ADB, and World Bank.