Claims that the Philippines’ newly attained upper-middle-income country (UMIC) status could affect its access to concessional financing should be viewed with caution, according to House of Representatives Congressional Policy and Budget Research Department Executive Director Novel Bangsal.

Speaking at a news forum on Saturday, Bangsal said some observers have raised concerns that the country’s upgraded World Bank classification may eventually limit its access to concessional funding.

“They say the possible implication of this is that we may no longer be able to access concessional financing because those that are able to obtain concessional financing — borrowings or loans at much lower interest rates — are generally countries considered to be low-income,” Bangsal said.

Concessional finance, as defined by legalclarity.org, is a form of subsidized lending that helps lower-income countries access affordable capital.

Under the World Bank’s classification for fiscal year 2027, low-income economies are those with a gross national income (GNI) per capita of $1,175 or less.

Lower-middle-income economies have a GNI per capita ranging from $1,176 to $4,635, while upper-middle-income economies fall within the $4,636 to $14,375 range.

High-income economies are those with a GNI per capita exceeding $14,375.

The Philippines recently attained UMIC status after recording a GNI per capita of $4,850. Other countries that also moved into the upper-middle-income category include Vietnam, Jordan, Sri Lanka, and Micronesia.

Following the country’s reclassification, concerns emerged that the new status could prevent the Philippines from accessing concessional financing.

Bangsal, however, clarified that any restrictions would not take effect immediately, noting that a transition period remains in place before such limitations are imposed.

“There is a transition period that until such time the GNI per capita reaches around US$7,000, there will likely be limitations on your access to concessional financing,” he said.

“But again, it will not happen immediately. So, unless and until we are able to reach that GNI per capita level, that will only happen then,” Bangsal added.