PH, FRANCE SIGN P14-B LOANS FOR INFRA, FINANCIAL INCLUSION
THE Philippines has secured from the French government loans worth 250 million euros (P14 billion) that would support programs aimed at expanding financial services to vulnerable sectors and increase private sector participation in infrastructure projects.
Of the amount, 100 million euros would support the Inclusive Finance Development Program (IFDP) and the remaining 150 million euros would be used for the Expanding Private Participation in Infrastructure Program, the Department of Finance (DoF) said in a statement on Monday.
Both programs, co- financed with the Asian Development Bank (ADB), also aim to support the Philippine economy and strengthen its resilience in the post-coronavirus disease 2019 (Covid-19) era, it added.
Finance Secretary Carlos Dominguez
3rd and French Ambassador to the Philippines and Micronesia Nicolas Galey signed the loan agreements on June 9.
According to the Finance department, the policy-based loan for the first subprogram of the IFDP would help fund Manila’s efforts to expand financial services in the country, especially among small entrepreneurs, farmers and fishermen, women, and other vulnerable sectors.
The Agence Francaise de Developpement’s (AFD) loan for the program, it said, would also help the government consolidate its institutional and regulatory environment, improve its financial infrastructure, and strengthen the capacities of financial service providers, supervisors and regulatory bodies in line with its goal of building an inclusive and resilient financial sector.
The AFD will also finance a 1.5-million euro technical assistance (TA) program to strengthen the capacities of financial inclusion stakeholders, including supervisors, operators and clients.
The TA program, to be implemented in partnership with the Bangko Sentral ng Pilipinas and the Rural Bankers Association of the Philippines,
aims to help accelerate the digital transformation of the country’s financial institutions, especially those serving rural communities.
On the 150-million-euro loan, the DoF said it aimed to increase private sector participation in infrastructure financing in line with the government’s goal of fast-tracking the implementation of its “Build, Build, Build”
program to jump-start the economy and create more jobs.
This policy-based loan would complement the government’s funding plan to secure financial resources for critical programs such as “Build, Build, Build” as it grapples with market uncertainties and volatility, as well as increased social expenses and reduced fiscal resources amid the economic crisis triggered by the pandemic.
“The Philippine government is grateful to the AFD for co-financing with the ADB two programs [that support] President Duterte’s overriding goal of accelerating infrastructure development in order to spur high growth, attract investments, create jobs and achieve financial inclusion for all Filipinos,” Dominguez said.
“Such financial support from the country’s development partners like AFD for our priority programs is crucial at this time, when the Philippine government is embarking on its resources-intensive, four-pillar strategy to suppress the coronavirus outbreak and provide relief to our most affected sectors while restarting the stalled economy to a quick recovery from the global economic slump induced by the lethal virus,” he added.