The policy-making Monetary Board of the Bangko Sentral ng Pilipinas has approved USD3.81 billion in foreign borrowings for the public sector during the third quarter of 2024, marking a 36 percent increase from the USD2.81 billion approved in the same period last year.
The approved borrowings include a bond issuance of USD2.50 billion aimed at financing the national government’s budget and assets, in line with the Philippines’ Sustainable Finance Framework.
Additionally, two project loans totaling USD535.97 million will support initiatives in maritime safety and agrarian reform, while a program loan of USD778.59 million will focus on economic recovery, environmental protection, and climate resilience.
Under the Constitution, all foreign loans must receive prior approval from the Monetary Board to ensure responsible resource management and maintain sustainable external debt levels.
Government debt as percent of local output, measured as the gross domestic product (GDP), equaled 60.1 percent in 2023. Such debt averaged 55.5 percent of GDP from 1990 to 2023 and was highest at 74.9 percent of GDP in 1993.
Government debt was lowest in 2019 when it equaled only 39.6 percent of GDP, according to the Bureau of the Treasury.
