Finance Secretary Carlos Dominguez III and Japanese Ambassador Koji Haneda signed the loan pact.
Dominguez said the standby facility has a fixed interest of 0.01% and grace period of 10 years. It may be released within three years.
He said the pandemic has highlighted the the need to build the country’s financial resilience against disasters and similar emergencies.
“The ability to mobilize financial resources without delay is essential to emergency preparedness,” he said.