ADB sovereign loans to PHL to hit $24B T
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HE Asian Development Bank (ADB) said the countr y’s sovereign lending program could reach $24 billion until 2029 to finance various projects and programs that promote inclusive growth and climate resilience nationwide. In the latest Country Partnership Strategy (CPS), ADB said the amount could be higher depending on the national government’s demand and the availability of funding through its Ordinary Capital Resource (OCR). As of December 2023, the total sovereign loans and grants extended by ADB to the country reached $10.75 billion and $244.8 million worth of nonsovereign loans and grants. “There is potential for lending to move above this level given sub-
stantial government demand and premised on increased OCR availability,” the CPS document stated. “In such considerations, ADB will be cognizant of the single-country limit and any changes in the assessed low risk of sovereign debt stress in the medium term,” it added. ADB said its CPS for the Philippines is also designed to pave the way toward gradually increased nonsovereign financing and Public Private Partnerships (PPPs). The Manila-based multilateral development bank said this will allow the national government to reduce its level of public infrastructure investment by the end of the CPS period. “The country’s cost-sharing ceiling for loans and grants, as well as
TA (technical assistance) projects, will be set at up to 99 percent on a portfolio-wide basis. Specific costsharing arrangements will be determined,” the document stated. ADB said its CPS will focus on addressing critical development needs and bolstering support on three key areas—human development, economic competitiveness and quality infrastructure, as well as nature-based development and disaster resilience. Crosscutting initiatives that promote digital transformation, gender equality, and improved governance and institutional capacity would also be integral to the strategy, ensuring a holistic approach to development.
ADB said in the next six years, it will intensify support for initiatives that benefit low-income households, promote regional economic growth corridors through flagship infrastructure investments, and shift focus to emerging sectors like clean energy, blue economy, and naturebased investments. “ADB’s partnership with the Philippines is at its strongest. This new strategy will further a flourishing collaboration to support the country in achieving a prosperous future that leaves no one behind,particularly as it faces the dual challenges of accelerating economic growth and addressing persistent poverty and
BusinessMirror A broader look at today’s business
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FULL RELIEF FROM CHEAP RICE? WAIT TILL NEXT YR www.businessmirror.com.ph
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Friday, September 6, 2024 Vol. 19 No. 325
P25.00 nationwide | 2 sections 24 pages | 7 days a week
By Cai U. Ordinario
F
@caiordinario
ILIPINOS looking for some relief in terms of rice prices may have to wait till next year for the full fruition of the promise offered by the reduction in rice tariffs, according to an economist.
On Thursday, the Philippine Statistics Authority (PSA) disclosed that the country’s inflation rate slowed to 3.3 percent in August on the back of cheaper food and transportation costs. (See: https://businessmirror.com. ph/2024/09/05/inflation-slows-down-at3-3-in-august-2024-psa/). Part of the reasons for the reduction in overall inflation was cheaper rice, which led to an inflation rate of 14.7 percent year-on-year growth and deflation of 0.5 percent monthon-month in August. Rice accounts for 8.87 percent of the Consumer Price Index (CPI) and 32.7 percent of the reduction in inflation last month. See “Full,” A2
QUARRYING QUANDARY This top view of the damaged mountains in Teresa, Rizal, made possible through drone on September 5, shows the full extent of the devastation that sparked concern from President Ferdinand Marcos Jr. when he conducted an aerial inspection of the area the previous day, following days of nonstop rains from Typhoon Enteng and the southwest monsoon that triggered floods and landslides. He expressed deep concern over the environmental devastation caused by, among others, illegal quarrying and stressed the urgent need for stricter enforcement of regulations. NONOY LACZA
Recto sees more palpable NEDA: PINOY MIDDLE-CLASS LIFESTYLE COSTS P194K/MONTH rice price decline in Sept
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MIDDLE-CLASS lifestyle may cost about P194,000 a month for a family of four, “too much” for many Filipinos to afford, according to rough estimates made by the National Economic and Development Authority (Neda). Neda Undersecretary for Policy and Planning Rosemarie G. Edillon said this in her presentation at the launch of the Development Policy Research Month (DPRM) of the Philippine Institute for Development Studies (PIDS) on Thursday.
Ed i l lon sa id t his cou ld greatly be reduced to around P92,000 a month, if reforms on economic and social policies are introduced. She said ensuring the resilience of the middle class to various shocks is the path toward attaining the AmBisyon 2040. “I think the point there really is by how much we can really drastically reduce that needed amount if we have the enabling economic and social policy,” Edillon told BusinessMirror. See “Neda,” A2
By Reine Juvierre Alberto
W
@reine_alberto
ITH the reduced rice tariffs lowering the rice prices and slowing down overall inflation in August 2024, consumers can expect rice prices to drop in September, according to Finance Secretary Ralph G. Recto. Inflation eased to 3.3 percent in August 2024 due to slower annual increment of food and nonalcoholic beverages at 3.9 percent in August 2024 from 6.4 percent in the previous month, the Philippine Statistics Authority (PSA) said. (See: https://businessmirror.com.
ph/2024/09/05/inflation-slows-down-at3-3-in-august-2024-psa/). This is within the Bangko Sentral ng Pilipinas’ (BSP) forecast of 3.2 to 4.0 percent for August 2024. The national average inflation from January to August 2024 stood at 3.6 percent and was within the government's target band of 3 to 4 percent for the year. Rice inflation slowed down to 14.7 percent in August 2024 from 20.9 percent in July 2024. Monthon-month reduction in retail rice prices was recorded from 0.47 percent to 0.53 percent. Continued on A13
PESO exchange rates n US 56.5660 n japan 0.3938 n UK 74.3673 n HK 7.2553 n CHINA 7.9531 n singapore 43.3921 n australia 38.0350 n EU 62.6978 n KOREA 0.0424 n SAUDI arabia 15.0722 Source: BSP (September 5, 2024)