Manila - The Asian Development Bank (ADB) said Wednesday it extended a 250-million-dollar loan to help strengthen the Philippine government's fiscal management and reform programmes.

The Manila-based ADB said the loan will help the Philippine government in dealing with the adverse impact of the recent developments in the global economy.

It will also boost the government's efforts to implement measures to strengthen the investment climate with focus on reducing red tape, and support for infrastructure policy and rural development.

Manila - Divers from two salvage firms began to retrieve toxic chemicals from a sunken passenger ferry in the Philippines Tuesday, a senior official said.

Transportation Undersecretary Elena Bautista said about 400 packs of hazardous pesticide endosulfan was retrieved from Princess of the Stars, which sank off central island of Sibuyan, 300 kilometres south of Manila.

The passenger ferry was carrying more than 800 people and at least 10 tons of endosulfan when it capsized in June after it was battered by strong winds and huge waves at the height of a typhoon.

Aside from endosulfan, salvage divers hope to retrieve four other toxic chemicals, although in smaller volumes, stuck in the cargo bay of the ferry.

Manila - Seven soldiers including one officer were killed in clashes with Muslim secessionist rebels in the southern Philippines, a military spokesman said Tuesday.

Lieutenant Colonel Ernesto Torres said three soldiers were killed Monday morning in combat with Moro Islamic Liberation Front (MILF) rebels in Datu Piang town in Maguindanao province, 960 kilometres south of Manila.

He said one officer was among the casualties.

Four more soldiers were killed when government troops clashed with another group of MILF rebels in nearby Datu Saudi Ampatuan town Monday afternoon.

Manila - Four more miners were rescued overnight after being trapped for one week in a flooded mineshaft in the northern Philippines, bringing the total number rescued alive to six, a regional police chief said Tuesday.

Chief Superintendent Eugene Martin said one miner was rescued before midnight Monday while three more were found early Tuesday as rescuers work round-the-clock to take advantage of the good weather.

Manila- Two miners were rescued alive on Monday after seven days of being trapped inside a flooded mineshaft in the northern Philippines.

Manila  - Four soldiers were wounded Monday in clashes between government troops and Muslim separatist rebels in the southern Philippines, a regional military spokesman said.

Major Armand Rico said the initial firefight between members of the Moro Islamic Liberation Front (MILF) and government troops broke out early Monday in Datu Piang town in Maguindanao province, 960 kilometres south of Manila.

Rico said fighting also broke out in the nearby town of Guindulungan. There were no reported casualties on the MILF side.

The military has intensified operations against three MILF commanders who attacked towns and seized villages last month.