The Department of Finance (DOF) has negotiated $800-million financing to support policies that improve public spending, support business growth, address job-skills mismatch and increase job readiness, the department said in a news release.
The Philippines’ first Growth and Jobs Development Policy Loan (G&J DPL1), backed by the World Bank-International Bank for Reconstruction and Development (WB-IBRD), is a policy-based budget support for the Philippine government’s reform agenda.
This is the first WB financing to be secured under Finance Secretary Frederick D. Go’s leadership, which aims to strengthen fiscal sustainability and accelerate economic recovery and job creation.
“This financing from the World Bank is a strong vote of confidence in the Philippines’ growth path. Part of what makes this financing so important is our firm commitment to fiscal discipline, ensuring that every peso is spent wisely to create jobs, support businesses, and strengthen public services for the benefit of all Filipinos,” Secretary Go said.
“I thank the World Bank for their continued partnership in helping the Philippines achieve its growth and development goals,” he added.
The JPY 123.088 billion (USD 800 million) DPL will focus on three pillars.
First is strengthening fiscal management by improving resource mobilization and spending wisely to ensure that funds are directed towards priority investments in infrastructure and human capital.
Second is enhancing opportunities for private investment and innovation through policies that streamline ease of doing business and allow them to grow and offer quality jobs.
Third is building labor force capabilities by improving education to technical and vocational training so workers have the skills to access higher-quality jobs and businesses can find the talent they need to expand.
The WB-IBRD is providing the G&J DPL1 in recognition of the Philippine government’s accomplishments in policy reform and its ongoing commitment to deliver results.
“The World Bank is proud to continue supporting the Philippines’ priorities — turning strong growth into more and better-paying jobs. By strengthening fiscal foundations, improving the business climate, and investing in human capital, this effort will unlock private investment and equip people with the skills they need to find jobs and thrive,” said Zafer Mustafaoğlu, World Bank Division Director for the Philippines, Malaysia, and Brunei.
The WB-IBRD financing supports the Philippines government’s efforts to create jobs, boost growth, and strengthen public services.