Manila - The Intergovernmental Fiscal Policy Board (IFPB) has approved new guidelines for official development assistance (ODA) loans aimed at supporting the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), announced by the Department of Finance (DOF). The guidelines facilitate loans for various development projects in the BARMM, enhancing the region's financial and social stability.
According to Philippines News Agency, the guidelines were finalized and signed at the DOF office in Manila after their approval at the seventh IFPB meeting. Co-chaired by Finance Secretary Ralph Recto and Bangsamoro Government Minister of Finance, Budget and Management Ubaida Pacasem, the IFPB operates under the Bangsamoro Organic Law, addressing revenue imbalances and the financial requirements of the BARMM. The new ODA guidelines permit the Bangsamoro government to take loans from foreign governments, their agencies, and international organizations, provided these loans include a 25 percent grant element and are used only when other financial instruments are unavailable.
These funds are restricted from being used for telecommunication programs, projects legally mandated to the private sector, or for financing private corporations with access to commercial credit. The approved guidelines detail the involved Bangsamoro government bodies, necessary documents for technical and financial evaluations, and the procedures for coordinating ODA loan approvals with the national government.
Finance Secretary Ralph Recto emphasized the significance of the guidelines during the signing ceremony, stating they equip the BARMM to effectively leverage development opportunities and foster economic growth, which could significantly enhance the living standards within the region. Minister Ubaida Pacasem also expressed satisfaction with the development, highlighting its importance for achieving fiscal sustainability and advancing the Bangsamoro Development Plan.
Additionally, the meeting covered the tax study group's deliverables, including the process for revenue collection and sharing, and updates on the transition of tax administration functions to the Bangsamoro Revenue Office. Other discussions involved governance matters regarding the Al-Amanah Islamic Investment Bank of the Philippines and cooperative tax exemption certificates in BARMM.