ADB OKs $200 million loan to Philippines

MANILA, Philippines — The Asian Development Bank (ADB) has approved a new $200-million loan to the Philippines to support the provision of emergency cash subsidies to vulnerable households amid the coronavirus disease 2019 (COVID-19) pandemic.

“This global pandemic... has disrupted the livelihoods of millions of Filipinos and could set back the very substantial gains the country has made in reducing poverty in recent years,” said ADB Vice President Ahmed Saeed. 

“The new loan supports the government’s emergency subsidy program, which was designed to help vulnerable households get through this very difficult period and avoid falling into poverty.”

On March 24, President Duterte signed into law the Bayanihan to Heal as One Act or Republic Act  11469 authorizing the government to implement an emergency subsidy program that provides cash payments of P5,000 to P8,000 ($100 to $158) per month for two months to 18 million low-income families nationwide. 

The program covers 4.3 million poor households covered under the country’s conditional cash transfer (CCT) program Pantawid Pamilyang Pilipino Program (4Ps) which the ADB has been supporting since 2010.

The ADB’s loan, under the Social Protection Support Project–Second Additional Financing, will contribute to the $726 million required to provide emergency subsidies to 4Ps households in April and May 2020.

The loan is part of ADB’s comprehensive support to the Philippines to mitigate the damaging effects of the pandemic on the economy and well-being of Filipinos. 

It comes after the signing of the $1.5-billion loan for ADB’s COVID-19 Active Response and Expenditure Support program on April 23. 

Two grants approved in March, totaling $8 million, are supporting the delivery of food baskets to at least 140,000 vulnerable households in Metro Manila and nearby provinces, purchase of emergency medical supplies and setting up of a new laboratory that will increase the country’s COVID-19 testing capacity by 3,000 tests a day.

ADB said it is also preparing an Expanded Social Assistance Project to support the government’s medium-term financing of the 4Ps program.