The World Bank has approved the extension of a $300-million loan to the Philippines to support the country’s efforts to attract investments and reduce the incidence of poverty.
In a statement, the World Bank said the amount, equivalent to about P12 billion, is a development policy loan (DPL) or a type of assistance that enables a recipient country to decide on the particular programs it needs to finance.
In the case of the Philippines, the government intends to use the DPL to improve efficiency of the delivery of education and health services for the poor.
The government likewise will use the proceeds to further build up its resources for infrastructure which, in turn, may attract foreign direct investments.
“The Philippines is vigorously implementing a comprehensive reform agenda centered on restoring people’s trust in government through improved governance and empowering them to rise above poverty. We are pleased to support the program through the DPL,” said World Bank country director Motoo Konishi.
Finance Secretary Cesar Purisima said the loan from the World Bank would allow the Philippines to keep a robust growth rate, which could translate to poverty reduction.
“This new financing, coupled with the support of other sectors of society, will boost our efforts for making sure that more of our countrymen, particularly the poor and the most vulnerable, are contributing to, and benefiting from, economic growth,” Purisima said in a same statement released by the World Bank.
Last year the Philippines became one of the fastest-growing economies in the world, expanding by 6.6 percent year on year. Still, only the middle class and the rich appear to have benefited from this development, economists said.
To make the economy’s growth “inclusive,” more poor people should have access to the government’s health and education services, they added.