Asian Development Bank triples loans to Philippines to $1.3B for infrastructure projects
Associated Press
07/10/09 12:50 AM EDT
MANILA, PHILIPPINES — The Asian Development Bank has tripled its annual assistance to the Philippines to $1.3 billion to support the government's pump priming measures, an official said.
The ADB director for the Philippines, Neeraj Jain, said poor infrastructure is the top constraint on the country's economy, which shrank 2.3 percent in the first quarter of this year from the previous quarter.
Jain said Thursday that the government should spend on infrastructure and social services to sustain growth in the medium term, and institute measures that will boost state revenues such as more efficient tax collection.
Economic Secretary Ralph Recto has predicted gross domestic product will expand by 0.8 percent to 1.8 percent this year, compared to last year's growth of 3.8 percent.
Jain said the Philippine economy could still expand this year, driven by continuing growth in remittances by 10 million Filipinos working overseas, improvements in business confidence and a turnaround in key exports.
Depending on the situation, the Manila-based lender could provide an additional $2 billion to $3 billion between 2010 and 2012, Jain said.
