Hanoi (VNA) - The Asian Development Bank (ADB) has approved a500-million-USD policy-based loan to allow the Philippines to quickly access emergency financing in the event of disasters triggered by natural hazards orpublic health emergencies.
The Philippines has been hit by several major disasters in recent years,including typhoon Haiyan in 2013, the Taal volcano eruption in January 2020,and the ongoing COVID-19 pandemic, ADB Vice-President Ahmed Saeed said in astatement.
"This new contingent disaster financing instrument will help thegovernment manage fiscal risks posed by those shocks and lessen the economicand social impacts on people's livelihoods and the country's economy,"Saeed added.
ADB Financial Sector Specialist for Southeast Asia Benita Ainabe said theDisaster Resilience Improvement Programme will support government policyreforms aimed at ensuring the government to quickly address the needs ofvulnerable segments of the population following disasters. It will alsostrengthen the Philippines' overall response to disasters and pandemics.
Located in the Pacific Ring of Fire, the Philippines is among the mostdisaster-prone countries in the world, including active volcanoes, frequentearthquakes, and an average of 20 typhoons per year with floods and landslides.
Nearly 75 percent of the country's population are vulnerable to multiplenatural hazards, and such disasters worsen poverty in typhoon-prone provincesalong the country's eastern seaboard.
According to the ADB, disasters cost the Philippines 0.7 to 1.0 percent of GDPevery year, including about 43.5 billion pesos (roughly 890 million USD) causedby earthquakes and around 133 billion pesos (roughly 2.7 billion USD) fromtyphoons.
The bank has provided at least 1.8 billion USD in loans and grants to assistthe Philippine government in its urgent COVID-19 response./.
The Philippines has been hit by several major disasters in recent years,including typhoon Haiyan in 2013, the Taal volcano eruption in January 2020,and the ongoing COVID-19 pandemic, ADB Vice-President Ahmed Saeed said in astatement.
"This new contingent disaster financing instrument will help thegovernment manage fiscal risks posed by those shocks and lessen the economicand social impacts on people's livelihoods and the country's economy,"Saeed added.
ADB Financial Sector Specialist for Southeast Asia Benita Ainabe said theDisaster Resilience Improvement Programme will support government policyreforms aimed at ensuring the government to quickly address the needs ofvulnerable segments of the population following disasters. It will alsostrengthen the Philippines' overall response to disasters and pandemics.
Located in the Pacific Ring of Fire, the Philippines is among the mostdisaster-prone countries in the world, including active volcanoes, frequentearthquakes, and an average of 20 typhoons per year with floods and landslides.
Nearly 75 percent of the country's population are vulnerable to multiplenatural hazards, and such disasters worsen poverty in typhoon-prone provincesalong the country's eastern seaboard.
According to the ADB, disasters cost the Philippines 0.7 to 1.0 percent of GDPevery year, including about 43.5 billion pesos (roughly 890 million USD) causedby earthquakes and around 133 billion pesos (roughly 2.7 billion USD) fromtyphoons.
The bank has provided at least 1.8 billion USD in loans and grants to assistthe Philippine government in its urgent COVID-19 response./.
VNA
