The policy-making Monetary Board of the Bangko Sentral ng Pilipinas (BSP) on Monday approved USD2.87 billion worth of foreign borrowings by the public sector in the first three months of the year.
This was 48 percent lower than only USD5.56 billion approved in the same period in 2023. These consist of two project loans aggregating to USD0.85 billion, and five program loans aggregating another USD2.02 billion.
These borrowings will fund the national government’s projects on infrastructure (USD0.85 billion) and programs on policy reforms in health care (USD0.91 billion), digital transformation (USD0.41 billion), tax administration (USD0.40 billion), and inclusive finance development (USD0.30 billion).
Under the 1987 Constitution, prior BSP approval, through the MB, 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 MB 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.
