RTTNews) - The World Bank announced on Wednesday that its board of directors had approved a $405 million loan to the Philippines to assist the government's Social Welfare reform efforts.

In a statement, the World Bank said that the loan was intended to strengthen the capacity of the Department of Social Welfare and Development (DSWD) as a social protection agency, finance part of the new conditional cash transfer (CCT) program, and establish a national Household Targeting System to identify the poor and improve targeting in social protection programs.

"An effective household Targeting System and the Cct Program will serve as the main pillars of a coherent and well-targeted social protection system in the Philippines," said DSWD Secretary Esperanza Cabral, stressing that the World Bank's support was crucial to deliver social welfare programs to the poor and marginalized people in the country.

The CCT program is targeted towards reducing poverty and improving healthcare facilities in the poorest provinces of the country, and the World Bank loan is intended to supplement the income of some 376,000 households.

World Bank Country Director Bert Hofman said that supporting the country's Social Welfare Reform agenda is central to the Bank's Country Assistance Strategy (CAS) in the Philippines, and added that the CCT program will augment the incomes of the targeted households in the country by about 20%.

"Reducing the vulnerability of poor households to sudden economic difficulties and improving their access to education and health services are among the most tangible ways to make growth work for the poor," he said.