The new Marcos administration is seeking a $300 million loan from the World Bank

 

On May 25, 2022, the World Bank offices may be seen in Washington, DC. On May 25, 2022, the World Bank offices may be seen in Washington, DC. The new government of President Ferdinand "Bongbong" Marcos Jr. is requesting a $300 million loan from the World Bank to fund a digital transformation initiative. 

This takes the total amount of low-interest, concessional loans requested during the Marcos Jr. government to $2.14 billion to far. The current loan is anticipated to be granted in fiscal year 2024, which begins in July of next year. According to World Bank papers, the planned Philippines' first digital transformation development strategy finance intends to catalyze "private investment for an inclusive economic recovery through digital transformation."

Finance Secretary Benjamin Diokno advocated increasing government revenues through digitizing tax administration in order to reduce the budget deficit to pre-pandemic levels of roughly 3% of GDP by 2028. However, Marcos Jr. and his main economic manager were opposed to additional or higher taxes, which former President Duterte's economic team had advocated in order to settle debts accrued during the ongoing epidemic and shrink the record deficit caused by enormous public spending to combat COVID-19. 

According to documents released in May, the World Bank would grant the Philippines $200 million in December for the second financial sector reform development policy funding targeted at "creating a robust, inclusive, and sustainable financial system."

Three years after agreeing to transfer the funds, the World Bank has canceled a $64 million (P3.5 billion) loan for the Metro Manila Bus Rapid Transit (BRT) Line 1 project. The Washington-based multilateral lender approved the Philippines' request for a $178.1 million loan aimed at tackling malnutrition and stunting in the country. 

However, the World Bank noted that with less than six months left before the project's closing date and given the lack of implementation progress, "an extension cannot be justified." The "Bayanihan" stimulus packages of the government, according to the World Bank, have helped millions of Filipinos who live in vulnerable homes and enterprises escape poverty.