ADB offers PHL $1.75 B financing 

The Asian Development Bank (ADB) has been actively helping the Philippines, its small businessmen and entrepreneurs, along with ordinary Filipinos, in these times of great hardship and economic challenges.

In a meeting between ADB President Masato Kanda and President Ferdinand Marcos, Jr. at the Malacañan Palace,  the multilateral lender vowed it is ready to provide more funding as the country tries to recover from the fallout of the West Asia war.

Specifically, the ADB has offered the Philippine government up to $1.75 billion in additional financing support to help it manage the economic impact of the energy shock.

“The Philippines is ADB’s home, and we see the strain this crisis is placing on Filipino families, workers, and businesses,” Kanda said. “ADB will act swiftly to support the government to protect vulnerable communities, manage fiscal pressures, and strengthen the economy’s resilience.”

The additional support of up to $1.75 billion will come in the form of policy-based and countercyclical lending, as well as trade finance if needed.

This is on top of some $2 billion in policy-based loans being prepared for the Philippines this year.

The ADB said this can help the government provide assistance to vulnerable Filipinos and mitigate the impact of the war-driven oil supply shock, which has already stoked inflation and slowed economic growth.

“The Philippines has been hit hard by the Middle East conflict because of its heavy reliance on imported oil, fertilizers, and other global commodities,” it said.

“ADB is also working with government agencies to protect vulnerable people and strengthen longer-term resilience. This includes advisory support to the Department of Agriculture on domestic fertilizer security, assistance to the Department of Social Welfare and Development on social protection, and support for energy security, clean energy, energy efficiency, and mass transit investments to reduce exposure to fuel-price shocks.”

The Philippines received $6.81 billion in loans, grants, and co-financing from the ADB last year.