Philippines

https://www.cnnphilippines.com/business/2023/6/27/World-bank-PH-loan.html

The Philippines and the World Bank inked four loan agreements worth $1.14 billion to finance the country’s initiatives on climate resilience, agricultural productivity, and education.

Finance Secretary Benjamin Diokno and World Bank Country Director for the Philippines Ndiame Diop signed the deals at the Department of Finance (DOF) on Monday, the agency said.

The biggest deal is the $750 million for the Philippines First Sustainable Recovery Development Policy Loan (DPL). It aims to bolster environmental protection and climate resilience, reach the country’s targets for renewable energy, and help reduce climate-related disaster risks.

The $110-million loan is allotted to the Teacher Effectiveness and Competencies Enhancement Project (TEACEP) of the Department of Education (DepEd). It seeks to improve the access to education in Zamboanga, Soccsksargen, and the Bangsamoro Autonomous Region in Muslim Mindanao.

Meanwhile, the $276-million loan is for the Mindanao Inclusive Agriculture Development Project (MIADP) and the Philippine Fisheries and Coastal Resiliency Project (FishCoRe). These are projects of the Department of Agriculture.

The MIADP seeks to improve the economic situation of select indigenous communities while the FishCoRe aims to increase agricultural productivity and improve fisheries management.

The DOF did not mention the interest rates and tenor for the four loan agreements.

The Bureau of the Treasury reported that as of end-April, the country’s outstanding debt is at ₱13.91 trillion — ₱54.24 billion more than in March due to the weakening of the peso against the US dollar.

The Marcos administration eyes ₱2.46 trillion in loans for 2024, an 11% increase from 2023.