Japan Holds Up on Loans to Philippines

Japan, the largest aid donor to the Philippines, is holding up loans of nearly $165 million to the Marcos government in the “confusion” after the Philippine elections, officials said today.

“In the aftermath of the election, there has been some confusion in the schedule of the disbursement of the loan,” agreed upon by the two sides in December, Foreign Ministry spokesman Yoshio Hatano said.

“The loan is being held up at the convenience of both sides,” he added without elaboration.

Foreign Minister Shintaro Abe in December brushed aside a demand by Japanese opposition politicians to delay sending $247.5 million in loans to help prop up the Philippine economy.

The delayed $165 million was a portion of that particular loan, Hatano said.

Commenting on the election, another ministry official said, “As to the reality of the election campaign and vote-counting, we have obtained information of fraud and violence--but that is indirect information which we’re not in a position to confirm.”

The Foreign Ministry said that in the latest available comparative figures, Japan contributed 42% of the Philippines’ total foreign aid in 1983, with the United States second at 38%.