From the Peninsula On-Line, reporter Roel Landingin tells us more details about the loan program.
The bank said it had received applications for more than the $3bn available, with Bangladesh, Indonesia, Kazakhstan, Pakistan, Sri Lanka and Vietnam also requesting help.
Bangladesh, like the Philippines, has asked for the maximum $500m. The International Monetary Fund is allocating special drawing rights worth $735m to Dhaka to strengthen its foreign exchange reserves amid the global downturn, a fund official told Reuters yesterday.
The Philippines is struggling to fund its stimulus measures, which include labour-intensive infrastructure projects and increased cash transfers, amid falling government revenues and a widening budget deficit. The economy shrank 2.3 percent quarter-on-quarter in the January-March period and the government sharply cut its full-year growth forecast in June to only just 0.8-1.8 percent, from the previous target of 3.1-4.1 percent. Manila warned of the budget deficit reaching as much as 250bn pesos ($5.2bn), equivalent to 3.5 percent of gross domestic product, because of revenue shortfalls.
Yesterday, the ADB said the new loan would “help close the government’s budget financing gap for this year”.