WB President Jim Yong Kim (Source: VNA)

The World Bank Group and its member International Financial Corporation (IFC) will provide loans of up to 4.2 billion USD to aid the Philippines’ efforts to reduce poverty, general jobs and sustain growth as the country recovers from the impact of a devastating typhoon and separatist rebellion.

Of the loans, the WB will provide 3.2 billion USD in development financing to the Philippine government, while the IFC will offer 1 billion USD for investment in business and industry under a 2015-18 aid programme, WB President Jim Yong Kim said.

Earlier, the WB President announced a separate assistance worth 528 million USD for the country’s rural development project this year to boost the income of farmers and fishermen. The assistance includes 62 million USD for areas hit by Typhoon Haiyan last year.

The project also covers upgrade and construction of roads, bridges, and irrigation and potable water systems in the turbulent southern Philippines.

Due to the impact of Typhoon Haiyan and an earthquake during the last quarter of 2013, the Philippines registered a growth rate of 5.7 percent in the first quarter of this year, down from 7.7 percent for the same period last year and 6.3 percent in the last quarter of 2013.

The WB has lowered the forecast for overall global growth from 3.2 percent to 2.8 percent, but maintained its prediction of a 6.4 percent growth for the Philippines.

VNA