MANILA – The government is readying additional measures to further buoy the domestic economy from economic difficulties, especially now that multilateral lenders have raised the threat of a global recession.
In a Viber message to journalists, Finance Secretary Carlos Dominguez III said economic managers “are targeting the first draft (of measures) by the end of the week.”
Asked whether the government will tap the USD1-trillion loan facility that the International Monetary Fund (IMF) has allocated for countries affected by coronavirus disease 2019 (Covid-19), Dominguez said they are awaiting the details of the terms and conditions of the offer.
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno, in a reply to a message from the Philippine News Agency, said monetary officials will discuss additional measures against another global economic crunch during the meeting of the policy-making Monetary Board (MB) on Thursday.
Over the weekend, IMF Managing Director Kristalina Georgieva said the global economy has entered into a recession as countries face the global pandemic caused by the new coronavirus.
She identified risks to global growth bankruptcies and layoffs that will hamper immediate economic recovery.
Georgieva said a rebound is possible next year if governments succeed in containing the virus and its economic impact, adding the lender is ready to deploy about USD1 trillion in loans to aid countries hit by the virus.
The World Bank said developing countries in East Asia and the Pacific that are recovering from the trade tensions now face greater problems because of Covid-19 and the possible global financial shock and recession.
In its report titled East Asia and Pacific in the Time of Covid-19, the lender raised the need for governments to “act quickly, cooperatively, and at scale” to address the impact of the global shock.
It recommended the fine-tuning of health and macroeconomic policies towards addressing the further rise of Covid-19 cases and the improvement of healthcare capacities.
The report also called for fiscal and monetary policies that will address the pandemic, as well as the provisions for aids in the financial sector to allow households more access to credit.
Trade policies should also remain open, it added, to boost cooperation among the country and the public and private sectors. (PNA)