THE Philippines is ready to tap the $500-million development policy loan from the World Bank’s lending arm, which the country can draw upon in times of natural disasters and health crises.
The Department of Finance (DOF) said the World Bank’s Board of Executive Directors approved the development policy loan for the country on Nov. 16.
Dubbed the “Philippines Disaster Risk Management and Climate Development Policy Loan,” the facility will be financed by the World Bank’s lending arm, the International Bank for Reconstruction and Development.
This includes a Catastrophe Deferred Drawdown Option (DDO), with the funds available for disbursement when the President declares a state of calamity in response to a natural disaster or a public health emergency.
“The Philippines will greatly benefit from the development policy loan as one of the most disaster-prone countries in the world,” Finance secretary Benjamin Diokno said.
He added, “The drawdown feature is particularly helpful as it allows the quick disbursement of funds upon the declaration of a state of calamity by the President, providing the government immediate liquidity to rapidly deliver crucial services, such as healthcare, shelter, and food, in times of emergency.”
The full amount of the facility will be available for three years, with a revolving feature and a three-year drawdown period that can be renewed up to four times for a total maximum period of 15 years.
Based on the 2023 World Risk Index, the Philippines is among the most at-risk countries in terms of exposure to natural disasters, scoring 46.86 in 2023 on a scale of zero for very low risk to 100 for very high risk.
The latest data available from the Bureau of the Treasury show that the national government incurred a total outstanding debt of P14.27 trillion as of end-September, down 0.6 percent, or P80.9 billion, from P14.35 trillion as of end-August. (GMA Integrated News)
