Saturday, March 31, 2007

$600 Million More For The Philippines

The World Bank has said it expects to increase its lending to the Philippines to around $600 million per year over the next few years, amid improvement in the country's fiscal position.

"If we go back two to three years ago, the bank's assistance had fallen to between $100 million and $200 million a year," World Bank Regional Vice President James Adams told reporters at the signing of a new loan agreement between the bank and the government.

"This year we expect to be able to provide in total over $600 million in support to the government," he said.

The Philippines government's improved fiscal health has allowed it greater ability to provide the required matching funds for World Bank loans.

The government is currently seeking to lower its reliance on commercial foreign borrowing and shifting toward more domestic bond issuance and cheaper loans from multinational lenders like the World Bank.

Adams also said that for the first time in eight years, the bank is extending a development loan of $250 million to the Philippines.

The international lender's Philippines country director, Joachim von Amsberg, said the $600 million commitment will cover the fiscal year starting in July. He said the loans will finance 10 priority infrastructure projects. (www.nasdaq.com)

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