DoF hoping MCC engagement opens more doors for accessing financing

DoF hoping MCC engagement opens more doors for accessing financing

THE Department of Finance (DoF) said Philippine involvement with the US government’s Millennium Challenge Corp. (MCC) threshold programs will be a channel for further access to financing agreements.

“We welcome the eligibility of the Philippines under the Millennium Challenge Corp. threshold program which we hope will allow us to further access the bigger compact program. We appreciate the MCC Board’s approval of the selection of the Philippines’ eligibility to the grant-based resources of the MCC,” Finance Secretary Benjamin E. Diokno said in a statement.

On Dec. 13, the MCC Board selected the Philippines as eligible to develop a threshold program. The programs aim to “support policy and institutional reforms towards economic growth.”

The DoF said this was in recognition of its “renewed commitment to advancing reforms in good governance, human rights, and anti-corruption.”

According to the MCC website, the corporation partners with the world’s poorest countries that are committed to just and democratic governance, economic freedom and investing in their populations.

The Philippines’ engagement falls under a threshold program, which is a smaller grant focused on policy and institutional reforms.

“A threshold program is a contract between the MCC and a country that provides financial assistance to assist countries meet requirements to access large scale grants resources by becoming ‘compact eligible’ through support for policy and institutional reforms by addressing a country’s constraints to economic growth,” the DoF added.

A compact program is a longer-term agreement for countries that meet the MCC’s eligibility criteria.

The Philippines’ last compact grant concluded in 2016 and was worth $434 million. It also had a threshold grant worth $20.7 million that ran from 2006 to 2009.

“The Philippine government stands ready to work hand in hand with the US government towards developing and implementing important programs that will unlock growth in the Philippines and redound to economic and social transformation,” Mr. Diokno added.

Separately, the DoF said the Privatization Management Office remitted P1.2 billion to the National Treasury this year.

This was 84.6% higher than its target for 2023 and surpassed its performance from 2018 to 2021. — Luisa Maria Jacinta C. Jocson