World Bank approves USD600mn loan to support Philippines’ recovery

  • The World Bank has approved a USD600mn loan to support the Philippines’ economic recovery and efforts to make its financial sector more resilient. Financial inclusion can be a key enabler to speed up poverty reduction and strengthen recovery from the pandemic.
  • The funds will be channelled toward strengthening its financial sector stability, expanding financial inclusion and improving disaster risk finance
  • The Philippine central bank is aiming for 70% of Filipino adults to be bank account holders by this year.
  • The World Bank said the loan also aims to develop a catastrophe insurance market in the Philippines to prevent people from falling into poverty following natural disasters.
  • The Philippines, an archipelago of more than 7,600 islands, is hit by an average of 20 tropical storms every year that cause deadly landslides and flash floods, and destroy crops and infrastructure. It is also prone to earthquakes as it sits on the seismically active Pacific “Ring of Fire”.

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