‘More financing support needed amid global risks’

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April 26, 2025 | 12:00am

MANILA, Philippines — The Philippines has called on multilateral institutions to step up financing support to developing nations amid rising global challenges and risks.

During the Intergovernmental Group of Twenty-Four (G-24) Ministerial Meeting in Washington, the Department of Finance (DOF) said that international financial institutions should ramp up their support for emerging markets and developing economies (EMDEs) such as the Philippines.

DOF International Finance Group Undersecretary Joven Balbosa said developing economies are facing an increasingly interconnected global environment confronted by economic shocks, constrained fiscal space, climate change and growing geopolitical and trade tensions.

“International financial institutions, such as the World Bank and the International Monetary Fund, must be adequately equipped and are called upon to step in more decisively to support EMDEs through timely and accessible financing, technical assistance, knowledge support and enhanced policy dialogue,” Balbosa said.

He added that the interconnected nature of global trade necessitates careful consideration of potential unintended spillovers and spillbacks from trade measures, as many Southeast Asian economies are integral to the global supply chain.

The Philippines also called on multilaterals to implement sound fiscal and monetary policies that are attuned to the dynamics of the global economy, which will ensure long-term economic resilience and stability amid global headwinds.

Financial institutions are likewise urged to support vulnerable countries and find innovative ways to provide financing to programs that contribute to global growth and development.

The World Bank, for its part, said its newly developed Project Preparation Facility would help developing countries overcome project preparation barriers.

The bank also transformed its financial model with the Framework for Financial Incentives, which incentivizes its clients to invest in projects that produce benefits beyond their countries’ borders.

Formed in 1971, the G-24 helps coordinate the positions of developing countries on international monetary and development finance issues to ensure that their interests are adequately represented in negotiations on international monetary matters.