WB approves $500M loan for PH disaster, COVID-19 response

Finance Secretary Carlos Dominguez III signed a $500 million loan with the World Bank on behalf of the Philippine government, aimed at bolstering disaster response and recovery, including the current coronavirus pandemic.

The Third Risk Management Development Policy Loan will be paid over 29 years with a grace period of 10.5 years.

This is the third such loan from the World Bank to the Philippines; previous loans were for post-Yolanda reconstruction in 2013 and disaster risk management improvements in 2012 and 2015.

The loan will support policy reforms in disaster risk management, including unified disaster rehabilitation planning, integrated hazard analysis, seismic risk reduction plans, and emergency cash transfer programs during crises.

World Bank Acting Country Director Achim Fock emphasized the importance of enhancing risk management to ensure sustained poverty reduction.