AIIB, ADB boost Philippines response with $750m loan
The Asian Infrastructure Investment Bank (AIIB) has approved a $750 million loan to the Philippines in a bid to help stave off the worst public health and economic effects of the COVID-19 pandemic.
Cofinanced with the Asian Development Bank, the budgetary support will go toward increasing the government’s testing capacity, bolstering vulnerable sectors - including agriculture - and providing conditional cash transfers and emergency assistance to poor households. Additionally, at least one million micro, small and medium-sized enterprises will benefit from wage subsidies.
While AIIB does not have a regular instrument for policy-based financing, the bank is extending such financings on an exceptional basis under the COVID-19 Crisis Recovery Facility to support its members through projects cofinanced with the World Bank or the Asian Development Bank.
