Bank loan

World Bank loan: Philippines secures $ 600 million for economic recovery

The World Bank is providing the Philippines with another loan worth $ 600 million to help stimulate the economy and support other important reforms.

The pandemic has caused extreme havoc and continues to destroy the global economy. Even rich countries are feeling the effects, what more can developing countries ask for? Different nations are turning to World Bank loans to help their declining economies. Recently, he gave the Philippines $ 600 million to help finance their various reforms.

World Bank grants new loan to boost reforms in the Philippines

The World Bank recently granted the Philippines $ 600 million for economic recovery. The country will also use it to finance various reforms. It will help the “Pearl of the Orient Sea” to become competitive with strong financial resources.

The Philippines lags behind other Asia-Pacific countries in foreign investment, including retail. The World Bank has said sector reforms could boost investment. That is why it is important to have an equal opportunity for domestic and foreign investors.

The loan supports mechanisms to provide retail services, encourage private investment and reduce business costs. At the same time, it will boost broadband services to advance investments in information and communication technologies.

During the pandemic, Internet access becomes essential for education and businesses. This is because teachers and students depend on distance learning. Likewise, most employees who work in the office have to work from home temporarily.

“Reforms that promote competition in broadband and mobile telecommunications will benefit a large part of the underserved populations by increasing coverage and quality of service, increasing their access to markets, as well as access to services. ‘distance education and health,’ Ndiamé Diop said in a statement. .

According to him, such reforms are essential to accelerate and extend barriers to growth. Diop is the World Bank Country Director for the Philippines, Brunei, Thailand and Malaysia.

Development policy loan

The new World Bank loan to the Philippines is a development policy loan. It provides rapid financial assistance to countries carrying out reforms.

Usually, it accompanies institutional changes and supports policy. These are necessary because they will establish a landscape conducive to constant and reasonable growth. In addition, it will support the expansion of community tenacity through a better digital framework.

The World Bank’s senior economist, Rong Qian, noted that the government has already launched the Philippine identification system or PhilSys. It is a digital ID platform that supports the digital economy and increases access to public services.

Qian added that he would increase access and optimize the delivery of public services by providing Filipinos with an exclusive, valid and digital identity.

Filipinos can use the PhilSys ID for major public and private transactions. They can use it to open bank accounts, validate and certify welfare recipients. Plus, they can use it to make pension payments by next year.

Diamond Jubilee for the World Bank and the Philippines

The World Bank has continuously supported the Philippines for 75 years now. It helps to boost its development projects as well as various programs.

The World Bank began helping the country in 1945 to organize global finance and knowledge. It includes partnerships to defend the various efforts of the Philippines, such as the promotion of peace. It is about reducing poverty, modernizing infrastructure and improving education, health and nutrition. In addition, the bank contributes to strengthening the country’s adaptive capacity to climate change and natural disasters and to developing global competitiveness.

In December 2020, the World Bank approved two separate loans to support the country’s projects. The first is a $ 600 million loan to promote competitiveness and improve resilience to natural disasters. The second is $ 300 million to fund social services, including improved water and sanitation, construction of health posts and COVID-19 isolation facilities.

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