(Photo courtesy of IMF)
MANILA – Finance Secretary Frederick Go has called on multilateral development banks (MDBs) to expand flexible financing options for countries transitioning to upper middle-income status to help address their changing development priorities.
Go, who also serves as chair of the Association of Southeast Asian Nations (ASEAN) Finance Track, made the appeal during the International Monetary Fund (IMF) Managing Director’s Strategic Dialogue with ASEAN Authorities, held on the sidelines of the 2026 World Bank Group-IMF Annual Meetings in Bangkok, Thailand.
In a statement Wednesday, October 14, the Department of Finance (DOF) said the initiative supports the Philippines’ efforts as ASEAN Chair to strengthen cooperation with international financial institutions and promote sustainable economic growth across the region.
The Philippines attained upper middle-income country (UMIC) status earlier this year after its gross national income (GNI) per capita reached USD4,850, surpassing the USD4,636 threshold.
“The Philippines highlights the importance of a modernized partnership with the IMF and the World Bank. This should expand access to flexible financing solutions for transitioning nations,” Go said.
He emphasized the role of blended financing and stronger credit guarantees in attracting private investments, reducing financial risks, and lowering borrowing costs.
Go also reaffirmed the government’s commitment to fiscal consolidation under the updated Medium-Term Fiscal Framework, which aims to improve public spending efficiency while ensuring sufficient funding for priority infrastructure and development programs.
“Our fiscal discipline ensures we safeguard and fully fund high-impact public investments. We are focused on building economic foundations for long-term growth,” he said.
He added that the government is directing investments toward strategic economic corridors, including the Luzon Economic Corridor, to strengthen the country’s participation in global supply chains and support long-term economic expansion.
The DOF said continued collaboration with international financial institutions remains essential in addressing financing challenges and sustaining development as economies move toward higher income classifications.
