The Bangko Sentral ng Pilipinas (BSP) has approved USD3.21 billion in medium- to long-term foreign borrowings for the public sector in the fourth quarter of 2024. This represents a 3.35 percent decline compared to the USD3.32 billion approved for the same period in 2023, signaling a more cautious approach to external borrowing in the latter part of the year.
In total, the BSP’s Monetary Board has greenlit USD13.68 billion in public sector foreign borrowings throughout 2024, encompassing two major bond issuances (USD4.50 billion), 11 project loans (USD5.32 billion), and eight program loans (USD3.86 billion). This marks a 5.56 percent decrease in total borrowings compared to the USD14.49 billion approved in 2023. The decline is primarily attributed to lower program and project loans, which fell by 19 percent and 6 percent, respectively. However, an uptick in bond issuances—rising by 12.5 percent—partially offset the drop.
The approved borrowings will fund critical areas of the National Government’s fiscal strategy. Nearly one-third (32.89 percent) will be allocated to meet general financing needs, while the remaining funds will be used to finance infrastructure projects, including key transportation initiatives (31.79 percent), economic recovery and environmental programs (21.79 percent), education and healthcare initiatives (9.94 percent), and agrarian reform and maritime safety (3.59 percent).
The BSP’s oversight, as required under the 1987 Constitution and relevant fiscal regulations, ensures that foreign borrowings are managed prudently to support long-term fiscal sustainability. By approving these foreign loans, the BSP underscores its role in maintaining external debt at manageable levels, balancing economic growth ambitions with financial stability.
With these strategic borrowings, the Philippine government aims to accelerate its infrastructure development, enhance public services, and boost resilience against global economic headwinds. As such, the approval by the BSP’s Monetary Board remains a key macroeconomic event, signaling the country’s continued reliance on external debt to fund its growth agenda amidst global uncertainties.
