World Bank ready to extend $500 million to Philippines for typhoon-affected areas, DOF chief says

September 18, 2018

The Philippine government is eyeing to tap $500-million loan from the World Bank to augment its resources to aid the areas devastated by Typhoon Ompong.

In an economic briefing at the Bangko Sentral ng Pilipinas headquarters in Pasay City, Finance Secretary Carlos Dominguez III said for the government to get the aid, President Rodrigo Duterte has to declare a state of calamity.

"Should the President declare a state of calamity, we will be able to access the $500 million loan from World Bank at very reasonable rates," he said.

Dominguez said the interagency National Disaster Risk Reduction and Management Council will recommend to Duterte the declaration of a state of calamity.

He said the government is still consolidating the reports from the field to determine the overall damage brought by Ompong, which struck northern Luzon on September 15.

"With regard to typhoon, we're waiting for the final assessment of total crop damage. We don't know at this time how much. There is certain amount in infra. We don't have the total picture at the moment," Dominguez said.

BSP Deputy Governor Diwa Guinigundo did not see huge impact of the devastation brought by Ompong on inflation.

"The impact is basically isolated and confined in certain areas. We don't see generalized effects on supply logistics or even in terms of production," he said.

Socioeconomic Planning Secretary Ernesto Pernia said the destruction brought about by the typhoons, as well as high inflation, are expected to be "temporary" that will "slow poverty reduction."

But he said the Duterte administration still has four years to go as he expressed optimism that the government "can still achieve the poverty (incidence) target."

The government is eyeing to reduce the national poverty incidence from 13 percent to 15 percent by 2022, from 21.6 percent in 2015. Celerina Monte/DMS