For the period July to September 2024, the Monetary Board approved a total of $3.81 billion of public sector foreign borrowings.
These are 36 percent higher than the $2.81 billion approved in the same period in 2023.
These consist of one bond issuance amounting to $2.50 billion, two project loans aggregating $535.97 million and one program loan amounting to $778.59 million.
The bond issuance will fund the National Government’s general budget financing and financing/refinancing of assets in line with the Republic of the Philippines’ Sustainable Finance Framework.
Meanwhile, the other loans will cover projects on maritime safety/support and agrarian reform and a program on economic recovery, environmental protection and climate resilience.
Under Section 20, Article VII of the 1987 Constitution of the Republic of the Philippines, prior approval of the Bangko Sentral ng Pilipinas, through its Monetary Board, is required for all foreign loans to be contracted or guaranteed by the Republic of the Philippines.
Similarly, Letter of Instructions No. 158 dated 21 January 1974 requires all foreign borrowing proposals by the National Government, government agencies and government financial institutions to be submitted for approval-in-principle by the Monetary Board before commencement of actual negotiations.
“The BSP promotes the judicious use of the resources and ensures that external debt requirements are at manageable levels, to support external debt sustainability,” BSP said.
