June 25, 2021, 12:41:05 PM
The World Bank has approved a loan of US $ 400 million to support reforms that will help the Philippine government build a resilient financial sector and help ensure a more inclusive recovery from the COVID-19 pandemic.
The bank said on Friday that the Philippines’ first financial sector reform development policy finance loan was the first of two programs supporting three areas of reform, including strengthening stability, integrity and security. resilience of the financial sector, reports Xinhua.
The loan will also expand the financial inclusion of individuals and businesses and promote disaster risk financing that protects national budgets and businesses as well as the lives and livelihoods of families from the impacts of disasters, the bank added. .
“The health crisis, the economic impact of containment measures and the global slowdown have increased the urgency of reforms, not only to ensure financial sector stability or financial inclusion, but also to support economic recovery and minimize the ‘impact of future shocks, especially on the poor and vulnerable segments of the population,’ Ndiame Diop, World Bank country director for Brunei, Malaysia, the Philippines and Thailand, said in a statement.
In addition to providing timely financial resources to meet the government’s financing needs, Diop said the financial sector reforms supported under this loan “will help meet the immediate needs of individuals and micro, small and medium-sized enterprises in difficulty ”.
The bank said the new loan is a development policy loan (DPL) that provides rapid disbursement assistance to countries undertaking reforms.
DPLs generally support the political and institutional changes necessary to create an environment conducive to sustained and equitable growth, as defined in the development agenda of borrowing countries.
Among the policy reforms supported by this PPD to strengthen the stability, integrity and resilience of the financial sector are measures addressing legal, regulatory and supervisory issues in order to improve the prudential supervision of banks by the Bangko Sentral ng Pilipinas , introducing the legislation of conforming to global standards and ensuring the long-term availability of credit to small and medium-sized enterprises.