Does that reflect the Philippines lack of absorption capacity of the Philippine government?
It reflects a very challenging fiscal situation because we are lending to the government which means the government can take loans only to the extent that it makes investments. And since the fiscal situation has been so tight the government has not been able to invest that much and therefore it has been [using less] foreign financing. Isn’t that these loans require counterpart financing? That’s less of an issue today. It’s really an issue of what we call [the Philippines’] fiscal state. Because we are financing government expenditure so even if its 100 percent WB financing it would still need to be part of government budget. And we don’t want to contribute to a worsening debt situation. We don’t want to finance expenditures that are not in the context of an overall sustainable fiscal situation. We want to help solve the fiscal and economic problems [of the Philippines] rather than contribute to it. There are impressions that a significant part of those programs are being implemented in
