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ADB increases lending to the Philippines

Posted on July 29, 2015

MANILA-BASED Asian Development Bank (ADB) will increase its lending to the Philippines over the next three years to support infrastructure and other development thrusts, the regional lender and the Department of Finance announced yesterday.

“ADB stands ready to boost its sovereign lending from the present $1.8 billion over the three years 2015-2017 to about $3 billion (or 66% higher) between 2016 and 2018 using ADB’s expanded lending capacity,” according to the joint statement on the result of a meeting yesterday between Finance Secretary Cesar V. Purisima and ADB President Takehiko Nakao.

The statement quoted Mr. Nakao as saying that “ADB will continue to support infrastructure needs; programs to strengthen senior high school education, job creation for youth and social protection; deeper capital markets; improved access to finance and development in southern Philippines including Mindanao.”

“We are pleased to see the recent progress made by the government in its public-private partnership program and will continue to support its implementation.”

Also cited was ADB’s plan to help develop capital markets and nonbank financing mechanisms. “A capital reform program in 2017 will help boost access to nonbank finance through bond market development, promotion of long-term savings, and improving Treasury operations,” the statement read. “A financial inclusion project the following year will increase the number of poor and near-poor participating in the financial system, boosting their access to housing finance, small and medium enterprise credit, and microfinance credit.”

ADB also plans to “deepen its partnership” with local governments in disaster risk financing.”