Philippines converts $11.13 billion World Bank loans to fixed rate

December 17, 2023 - 4:53 PM
A participant stands near a logo of World Bank at the International Monetary Fund - World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018. (Reuters/Johannes P. Christo/File Photo)

 The Philippines has converted $11.13 billion worth of outstanding World Bank loans to fixed rate from floating rate, a move that could yield as much as $125.1 million in foreign interest payment savings, its finance ministry said on Friday.

The transaction, which was done last month, achieved an average fixed reference rate of 4.19% for the 40 International Bank for Reconstruction and Development loans, which is substantially lower than the prevailing rate, the Department of Finance said in a statement.

— Reporting by Karen Lema; Editing by Kanupriya Kapoor