Philippines Borrows $80 Million From Asian Development Bank to Benefit Microfina...

Sep 2006
Philiippines , September, 25 2006 - In a recent budget update, the Philippines’ Department of Finance said it would borrow $80 million from the Asian Development Bank (ADB). The funds will benefit the country’s Microfinance Development Program, which received a $150 million ADB loan in 2005. The Program mandate is to grow the Philippines' microfinance industry and to strengthen the regulatory institutions around it.

Founded in 1966, the Asian Development Bank finances and oversees projects that improve the economic health of member countries. The ADB currently has 66 members across Asia, as well as in Oceania, Europe and North America.  It had capitalization (contributed by member countries) of $50.2 billion in 2005, and revenues from its portfolio of loans and other activities amounted to $1.4 billion. 

In 2005, the ADB made loans totaling $5.8 billion to 64 projects.  The countries with the largest total loans included China ($1.4 billion), Indonesia ($1.1 billion), Pakistan ($776 million), and Vietnam ($577 million).   As of June 2006, the ADB's microfinance portfolio totaled $670.21 million, from which $180 million was allocated to the Philippines. 

The Bank helped launch the Philippines’ Microfinance Development Program in 2005 with its $150 million loan. The funds were used to establish “permanent access to sustainable institutional financial services for a majority of poor”, according to the ADB.  MicroCapital made mention of the $150 million loan in a May 30, 2006 article.  In it, the ADB (with assistance from the Japan Fund for Poverty Reduction) granted $900,000 to another microfinance project in the country. 

Source : MicroCapital

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