RP negotiating US$75m loan with ADB

RP negotiating US$75m loan with ADB

Deutsche Press Argentung, Manila

The Philippines is negotiating a US$75-million loan with the Asian Development Bank (ADB) to help fund the country's huge budget deficit, an official said Sunday.

Finance Secretary Jose Isidro Camacho said the single-tranche loan was expected to be disbursed late this year.

"This will be disbursed very quickly and the approval should not be a problem because most of the conditions have been met or at least were already started," he told reporters.

The Manila-based ADB has required capital market reforms for the approval of the loan, including the strengthening of supervisory and regulatory powers by the Securities and Exchange Commission.

Camacho said the loan proceeds would be used to finance the budget deficit, which is projected to reach 146 billion pesos ($2.92 billion) this year.

Next year, the government is targeting to keep the budget deficit at 130 billion pesos.