MANILA – The Asian Development Bank (ADB) has granted a $400-million, or roughly ₱20 billion policy-based loan to help the Philippines boost its local capital markets.
As the Philippines need to strengthen its domestic capital markets and sustained economic growth impacted by the pandemic, the loan will also support the infrastructure finance as well as government’s response to COVID-19.
The government’s infrastructure development program “Build Build Build” is targeting an increase in public spending on infrastructure at around 7% of gross domestic product by 2022 up from 5.5% in 2018.Finance Secretary Carlos “Sonny” Dominguez III said that it is important for the government to focus on its infrastructure programs and developments as it will be the country’s fuel for the economic recovery brought upon by the health crisis.
ADB in April approved a $1.5-billion loan for the Covid-19 programs and additional $200 million financing for the Social Protection Support Project.The new loan would put the total lending from ADB at $2.1 billion (Php 106 billion) for 2020.
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