WB team in RP for talks on $200-M loan

A seven-man appraisal mission from the World Bank is in town to meet with local officials in preparation for negotiations on the $200-million Public Finance Strengthening Loan, formerly known as the Public Sector Reform Loan (PSRL).

The team is headed by mission leader Lloyd Mckay. They are here to evaluate the country’s performance and policies on key economic issues relevant to the coverage of the proposed loan.

According to Finance Undersecretary Juanita Amatong, the WB has listed down four specific areas of concern that it wants to appraise while the team is in town.

These issues are resource mobilization, macro-economic policies, public expenditures and financial management and the government’s strategy for managing its contingent liabilities.

Amatong said the team has assigned each member in charge of these areas and they would meet with the relevant agencies and officials who would apprise them of the status quo as well as the government’s plans.

After the appraisal, Amatong said the WB mission would write up an appraisal report that would form part of the basis for discussions when the Philippines and the bank enter into the formal negotiations for the proposed loan.

Amatong said the succeeding meetings with the WB would cover negotiations for the actual terms of the loan as well as policy recommendations that the WB might have based on its appraisal.

The WB loan is a program loan which normally carries conditionalities that require the borrower to undertake policy reforms to ensure the success and sustainability of the program.

The proceeds of the loan, according to Amatong, would be used for budgetary support. – Des Ferriols