The Philippine government has called on the World Bank Group (WBG) and the International Monetary Fund (IMF) to increase their support for developing countries, even as the country transitions to upper-middle-income country (UMIC) status, emphasizing the need for assistance that helps nations navigate domestic and external challenges while remaining adaptable to evolving priorities.

In a statement delivered at the WBG-IMF 2025 annual meetings in Washington, D.C., on Oct. 17, Department of Finance (DOF) Undersecretary Joven Balbosa, temporary alternate governor of the International Bank for Reconstruction and Development (IBRD) for the Philippines, noted that the World Bank (WB) is the country’s third-largest official development assistance (ODA) partner, offering both financing and expertise to support national development goals. IBRD is the WBG’s lending arm for developing countries like the Philippines.

Balbosa also welcomed the WBG’s country partnership framework (CPF) for the Philippines for 2025-2031, describing it as a “comprehensive commitment and partnership” aligned with the Philippine Development Plan (PDP) 2023-2028.

The WBG will extend to the Philippines between $22 billion and $23 billion in loans and other financing starting mid-2025 until mid-2031 under the Washington-based multilateral lender’s newest six-year CPF or lending program to support both public and private initiatives aligned with the country’s climb to UMIC status.

Speaking on behalf of IBRD Governor for the Philippines and DOF Secretary Ralph G. Recto, Balbosa highlighted that the CPF reflects the WBG’s commitment to fostering a more inclusive, competitive, and resilient Philippines, focusing on key areas such as basic services, climate resilience, private sector job creation, and digital transformation.

Despite recent progress, Balbosa noted that developing countries continue to face structural challenges, including limited fiscal space, infrastructure gaps, and increasing risks from climate-related events, which hinder sustainable growth.

To address these challenges, Balbosa urged the WBG to sustain and expand its engagement by moving beyond traditional financing and developing innovative tools—such as guarantees, blended finance, and risk transfer solutions—to de-risk investments, attract private capital, and accelerate reforms.

The Philippine government also called on the WBG to rethink its financing tools and mechanisms, advocating for more innovative and concessional approaches to help countries manage high debt risks.

“The [WBG] must ensure sustainability of the work on the Framework for Financial Incentives, and pursue IBRD pricing reform Stage 2 to help developing countries amid tight fiscal buffers and boost competitiveness and affordability of IBRD loans,” Balbosa said.

He further emphasized the need for closer collaboration among multilateral development banks (MDBs) to promote comprehensive dialogue, safeguard financial system integrity, and address pressing global challenges.

Balbosa acknowledged the WBG’s role as a key partner in implementing the Philippines’ reform initiatives. He cited the IBRD’s Grant Facility for Project Preparation (GFPP) as a vital tool, providing grant-based support for feasibility studies and technical assessments to accelerate project readiness and strengthen implementation capacity.

“We strongly support the [WBG’s] continued efforts to further expand this type of financing mechanism to support the lower-middle-income countries (LMICs) and developing countries,” he added. The Philippines is currently an LMIC.

Earlier, Manila Bulletin reported that the Philippines recently received four grants from the WB under the GFPP.

One grant amounting to $1.6 million will support an upcoming nutrition project.

Another $1.7-million grant will help develop the proposed Technology-driven, Human-centered Climate and Disaster Resilience through Innovation for Vulnerable Empowerment (THRIVE) Project, while a $2-million grant was provided for the Clean Philippines Multiphase Approach (Phase 1) Project.

The Philippines also received a $1.7-million grant to prepare for a potential project loan aimed at supporting early childhood education in the country.

According to the WB’s fiscal year (FY) 2025 annual report published on Oct. 9, the Philippines ranked seventh overall in borrowings from the WBG during the FY from July 1, 2024, to June 30, 2025, with total loans of $2.855 billion.

Among clients of the IBRD, the Philippines’ total loans in FY 2025 were only exceeded by Brazil’s $3.856 billion in commitments, Türkiye’s $3.791 billion, Argentina’s $3.73 billion, and war-torn Ukraine’s $3.142 billion.

If borrowers from the WBG’s International Development Association (IDA), which lends to underdeveloped nations, are included, the total loans obtained by the Philippines in FY 2025 were also surpassed by Nigeria’s $3.145 billion and Bangladesh’s $3.049 billion.

In the previous FY 2024, the Philippines was the fifth-biggest borrower among IBRD clients, with a total of $2.35 billion in concessional loans obtained from July 2023 to June 2024.

The country was also the seventh-largest overall WBG borrower in FY 2024, just behind Ukraine, Ethiopia, Bangladesh, Türkiye, Indonesia, and India.

In FY 2023, covering the period July 2022 to June 2023, which coincided with the first full year of the Marcos Jr. administration, the Philippines borrowed $2.336 billion from the WBG.

(Ricardo M. Austria)