The Japan Fund for Poverty Reduction (JFPR) provided a grant of USD 1 million to the Government of the Philippines on March 17, 2008 to be used in the development of microinsurance for the nation’s 27.6 million citizens currently living below the poverty line. The grant will be managed by the Asian Development Bank (ADB), developing an insurance service targeting poor families in case of financial shocks caused by death, illness, or injury of family members.
As reported by the Asian Development Bank, only 11 percent of the country’s poor are insured due to lack of affordable insurance providers and limited knowledge for the need of financial protection against risk.
The ADB’s microinsurance development project in the Philippines complements their October 2005 USD 150 million loan for a microfinance development program and a USD 900 thousand grant for a financial cooperatives development project approved in 2006.
The project will be implemented by the National Credit Council of the Department of Finance over a period of four years starting in April 2008.
The Japan Fund for Poverty Reduction (JFPR) was established in May 2000 by the Japanese Government and the Asian Development Bank, focusing on long-term sustainable development projects. Currently, the fund has over USD 360 million in total assets of which USD 224 million has been committed.
The Asian Development Bank (ADB) was established in 1966 to promote economic and social development in the Asia region. Headquartered in Manila, ADB is supported by 67 member countries. Focusing on poverty reduction through sustainable development, ADB provides loans, guarantees, grants, education, and private sector investments with a total of USD 5.7 billion in funds dispersed in 2006.
By Melissa Duscha
Additional Resources:
Asian Development Bank (ADB)
Asian Development Bank (ADB): ADB and Japan Help Philippines Provide Insurance to the Poor
The Government of the Philippines: National Credit Council of the Department of Finance
Japan Fund for Poverty Reduction (JFPR)
MICROCAPITAL STORY: Asian Development Bank Backed by Japanese Government Grants $900,000 to the Filipino Government, Following On $150 Million in Public Microfinance Investment
MICROCAPITAL STORY: Government of Pakistan and Asian Development Bank (ADB) Sign Grant to Expand Outreach of Microfinance; First MicrofinanceBank and Kashf Foundation Help
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