Connect with us

Hi, what are you looking for?

News

Philippines eyes $400-million loan from World Bank

The Philippine government is seeking a $400-million loan from the World Bank, which will be used to boost financial inclusion, among others. — REUTERS/JOHANNES P. CHRISTO/FILE PHOTO

THE GOVERNMENT is seeking a $400-million (P19.22-billion) loan from the World Bank to support financial sector reforms and boost the economy’s recovery from the pandemic.

In a World Bank document published on its website on Tuesday, the World Bank’s board directors are likely to act on the proposed “Philippines First Financial Sector Reform Development Policy Financing” by June 24.

“The proposed development policy loan supports the government of the Philippines in achieving a resilient, inclusive, and sustainable financial sector to enable a more inclusive green recovery from the coronavirus disease 2019 (COVID-19) pandemic,” the World Bank said.

The Washington-based multilateral bank said the program is the first out of two operations that will help the government boost the stability and resilience of the financial sector. This will be achieved by “addressing legal, regulatory and supervisory gaps in the financial sector and increasing the availability and mobilization of long-term finance.”

It also aimed to broaden financial inclusion among individuals and companies in the country by promoting new financial services, fast-tracking reforms, and give small businesses better access to finance.

Lastly, the loan will also be used to promote disaster risk and sustainable finance through reforms to make the economy’s recovery more sustainable.

Among the reforms that will be supported by the program includes the improvement in the country’s anti-money laundering system and in combating the financing of terrorism (AML/CFT) regime; the establishment of the Philippines Catastrophe Risk Insurance Facility (PCIF) to help nonlife insurers to implement risk management systems based on international standards; and the adoption of central bank requirements on climate risk management and governance by domestic systemically important banks (D-SIBs) to help banks assess the impact of climate change on their portfolios better.

“The COVID-19 pandemic’s economic repercussions further highlight the importance of a strong financial infrastructure and diversified financial sector to support recovery. The COVID-19 shock has increased the urgency for reforms — not only to maintain financial sector stability or increase financial inclusion but also to support sustainable economic recovery and minimize the impact of future shocks, particularly on poor and vulnerable segments of the population,” the World Bank said.

However, the bank warned that prolonged crisis is a threat to the timely implementation of the proposed program and the economic and implementation risks should be mitigated to avoid reallocation of the budget away from the main objectives. — Beatrice M. Laforga

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Latest

Editor’s Pick

The Carphone Warehouse brand is set to vanish from the high street after Dixons Carphone changes the name of all its shops to...

Editor’s Pick

Bitcoin had a turbulent day, falling below $50,000 after reports that the crypto exchange Binance is facing investigations by the US Department of...

Editor’s Pick

Tunnelling in the Chilterns for HS2, the £100 billion high-speed line, began yesterday as ministers were told that multibillion-pound spending on rail links...

Editor’s Pick

Ten million people could have their second doses of coronavirus vaccines brought forward as the government attempts to stop a faster spreading Indian...

Editor’s Pick

Tens of thousands of Britons hoping for a holiday in Portugal this month had their plans plunged into chaos last night as the...

News

Every year, an estimated 1.35 million people worldwide die as a result of a road traffic crash. That is according to the World Health...

You May Also Like

When people envision technology overtaking society, many think of The Terminator and bulletproof robots. Or Big Brother in George Orwell’s Nineteen Eighty-Four, a symbol...

Financial Advisors

Stock Markets9 hours ago (Jul 02, 2020 04:45AM ET) (C) Reuters. ROME (Reuters) – World food prices rose in June to post their first...

Economy

SAN FRANCISCO — The spread of the coronavirus has meant feast or famine for technology start-ups. While many are cutting staff and slashing costs...

Economy

In Wisconsin and Ohio, farmers are dumping thousands of gallons of fresh milk into lagoons and manure pits. An Idaho farmer has dug huge...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 Respect Investment. All Rights Reserved.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!