MANILA (AFP) — The Asian Development Bank (ADB) said Wednesday it is extending a loan of 250 million dollars to the Philippine government, which is trying to implement a number of economic reforms.
The money will go towards improving fiscal management and supporting social reforms, the Manila-based ADB said in a statement, as President Gloria Arroyo tries to make the country more attractive to investment.
A number of reforms have led to macroeconomic stability and brought the national deficit under control, the lender said.
However the country has been hit hard by the rise in oil and food prices and the financial crisis in the United States, it added. This has hampered the efforts to maintain stability while making it harder to protect the poor.
Arroyo has put into place a number of measures to boost revenues and put the budget deficit under control since 2005 despite opposition from activist groups and even the church.
The ADB is also extending a grant of 800,000 dollars to support "public expenditure reform initiatives" at the Department of Budget and Management, the lender said.
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