The Philippine government has secured a $1.5-billion loan from the Asian Development Bank (ADB) to fund targeted social assistance and relief programs for commuters, vulnerable households, and overseas Filipino workers (OFWs) affected by ongoing global economic disruptions.
Department of Finance (DOF) Secretary Frederick D. Go signed the JPY 236.64-billion ($1.5 billion) financing agreement for the Assistance for Greater Resilience and Alleviation of Poverty (AGAPAY) program on October 6, 2026.
The loan will provide crucial budgetary support for the government’s response to economic shocks and potential energy supply bottlenecks triggered by escalating conflicts in the Middle East.
Funds drawn from the AGAPAY program will directly finance the government’s Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT). The comprehensive package encompasses interventions designed to stabilize domestic fuel and electricity supplies, keep public and commercial transport fares affordable, extend targeted subsidies to low-income families, and facilitate the repatriation and economic reintegration of displaced OFWs.
These targeted measures seek to lessen inflationary pressures on household budgets, safeguard local employment, and buffer vulnerable Filipinos against volatile international commodity markets.
“AGAPAY will help the government sustain its response to the economic impact of the Middle East crisis and fund measures that support vulnerable sectors, protect livelihoods, and help Filipino families cope with these challenges,” Finance Secretary Go said in a statement.
The ADB facility forms a core component of the national government’s external financing framework for fiscal year 2026, ensuring ready liquidity for priority socio-economic programs while fortifying the country’s macroeconomic buffer against external financial headwinds.