World Bank loan tapped to support ‘accelerated disbursement’ — DOF

The Department of Finance (DOF) said that the government’s fresh financing from the World Bank will be used by the Duterte administration for its “accelerated disbursement” before the expected lifting of the enchanted community quarantine (ECQ).

In a statement, Finance Secretary Carlos G. Dominguez III said yesterday that the $500 million budget-support loan from the Washington-based multilateral institution will fund the government’s financial relief program and healthcare system.

Dominguez acknowledged that like most other countries, the Philippines is also struggling to cope with the devastating health, social and economic impacts of the coronavirus pandemic

"We thank the World Bank for its swift action on this facility in support of disaster risk management,” Dominguez said, noting the $500-million loan is just one of several financial assistance programs made available to the Philippines by lender during the health crisis.

According to the finance chief, the World Bank loan "bolsters the Duterte administration's overall efforts to provide instant relief to the poor and other hardesthit sectors, and strengthen our healthcare system.”

Last April 10, the DOF and World Bank signed this agreement on the Third Risk Management Development Policy Loan (TRMDPL) that aims to strengthen the country’s capacity to prepare for, respond to, and recover from, natural disasters, including health emergencies.

The loan accord followed two earlier Risk Management Development Policy Loans (RMDPL) signed in 2012 and 2015 between the Philippines and the World Bank.

Dominguez said this third budget-support loan is programmed for accelerated disbursement by April 30, 2020 to help support the immediate financing requirements of the government resulting from the impact of the COVID-induced crisis.

The loan is payable in 29 years, inclusive of a 10-and-ahalf-year grace period.

According to the World Bank, the loan will support policy reforms undertaken by the Philippine government in the area of disaster risk management, including the implementation of an emergency cash transfer program during times of crises.

The loan also aims to support the adoption and implementation of a unified disaster rehabilitation and recovery planning framework by the national government and local government units (LGUs).

It will also fund the development of multi-year investment plans for seismic risk reduction and retrofitting of important government buildings; and the promotion of integrated hazard and risk analysis in physical planning, and in support of policy development.