Erap Eyes Miyazawa Fund for PAL Rehab

The Journal

Thursday, December 17, 1998

HANOI (Via PLDT) — President Joseph Estrada said yesterday he will study the proposal to tap Ja­pan's Miyazawa Fund in rehabili­tating the debt-ridden Philippine Airlines (PAL).

In a press briefing at the Daewoo Hotel here, the President underscored PAL’s importance to the Philippine economy, saying its permanent closure would deal a "big blow" to domestic businesses heavily dependent on air transport.

"Well, if that's possible," the President said when asked whether he would propose the PAL rescue plan to Japan.

"As you all know, PAL plays a very important role as far as business is concerned in the Phil­ippines. It will affect all business sectors, big or small," he added.

The Miyazawa fund initiative is a $30 billion Japan grant to aid crisis-hit economics in East Asia. It was named after as proponent, Japanese Finance Minister Kiichi Miyazawa.

On Monday, Secretary Edgardo Espiritu of the Depart­ment of Finance said the govern­ment is eyeing the possible use of the Miyazawa Fund in its bid to keep PAL in the air.

The finance chief said PAL may get up to $150 million from the Miyazawa Fund if Japanese creditors and donor organizations approve the terms of the loan under this grant.