METRO MANILA – The Asian Development Bank (ADB) approved fresh loan to the Philippines to support the reforms by the government to improved the country’s agri sector that could ultimately lessen poverty in provinces.
According to the bank’s vice-president, poverty has remained high because of low productivity and limited crop diversification despite the country’s initative of reducing the nation’s poverty rate.
The new loan will be funded under the “Competitive and Inclusive Agriculture Development Program, Subprogram 1” that was initially approved in April.
The borrowed funds will be payable in 15 years with a 3 years grace period. The credit will not have a counterpart funding from the government.
The funds approved is said to help the government open up opportunities in the farming sectors by pushing for reforms in trade policy and regulations as well as financial and social protection to families living in the province.
ADB said in a statement that the loan will be complemented by investments in expanding the flood risk management in major rivers in the province as well as improvement in irrigation efficiency and agro-enterprise development. Saeed said that the loan will support the government’s initiative to resolve institutional weaknesses in land and water management and provide support by extending social safety net for the underprivileged families.