World Bank approves $500 million more for PH
THE Philippines got another $500 million loan from the World Bank, which it will use to ease the impact of the coronavirus disease 2019 (Covid-19) on poor and vulnerable households and provide financial relief to small and medium businesses.
In a statement on Friday, the World Bank said the Philippines Emergency Covid-19 Response Development Policy Loan supported the country’s efforts to provide social assistance to 18 million poor and vulnerable Filipinos badly hit by the pandemic. It includes additional subsidies in the monthly cash transfers to 4.3 million beneficiaries of the “Pantawid Pamilyang Pilipino Program” (4Ps), expansion of social assistance to 13.6 million affected households that are not part of the program and support for repatriated overseas Filipino workers.
The new funding also supports government efforts to lighten the financial burden of small and medium enterprises through a two-month wage subsidy, additional financial relief through deferrals of tax and social security payments, and a credit guarantee scheme to help ensure continuity of their business operations and the preservation of jobs.
“The Covid-19 pandemic has badly hurt millions of poor and vulnerable Filipino families, particularly daily wage
earners,” said Achim Fock, World Bank Acting Country Director for Brunei, Malaysia, Philippines and Thailand.
“This new financing can help with the delivery of financial support for struggling families and communities while the country is ramping up efforts to contain the pandemic and reduce its economic impact,” he added.
Last month, the World Bank loaned the Philippines $ 500 million to enhance its disaster preparedness
policies, planning, and investments for public health emergencies.
A $100-million loan to help meet urgent healthcare needs in the wake of the pandemic and bolster the country’s public health preparedness was also approved.
Finance Secretary Carlos Dominguez 3rd thanked the World Bank for the additional funds.
“We thank the World Bank for its prompt action on this financial support for the Duterte administration’s efforts to provide immediate relief to poor and low-income Filipinos, plus small business workers who lost their income as a result of the work
stoppages induced by the coronavirus pandemic,” he said.
The World Bank Group said it was taking broad, fast action to help developing countries strengthen their pandemic response.
It added that over the next 15 months, the bank would deploy up to $ 160 billion in financial support to help countries protect the poor and vulnerable, support businesses, and bolster economic recovery, including $ 50 billion of new International Development Association resources in grants or highly concessional terms.