The Bangko Sentral ng Pilipinas (BSP) approved USD6.29 billion in proposed public sector foreign borrowings in the first quarter of 2025, marking a sharp 118.91 percent increase from USD2.87 billion during the same period last year. The uptick underscores the government’s pivot toward a more expansionary fiscal strategy aimed at sustaining economic growth through infrastructure development and socio-economic programs.
The BSP’s policy-making monetary board, which oversees the approval of all foreign borrowing proposals by the National Government and state-run financial institutions, authorized a mix of funding instruments with medium- to long-term maturities. These include USD3.33 billion in bond issuances, USD1.46 billion in project loans, and USD1.50 billion in program loans.
According to the BSP, the bond proceeds will support the National Government’s general budget requirements, including maturing debt obligations and social development initiatives. Meanwhile, the project loans will be directed toward critical infrastructure and transportation projects, while the program loans are earmarked for broader economic development and financial sector reforms.
The surge in foreign borrowings aligns with the central bank’s mandate to ensure the sustainability and prudence of the country’s external debt. Under Section 20, Article VII of the 1987 Constitution, and Letter of Instructions No. 158 (1974), all such borrowings must secure prior approval from the BSP to safeguard debt manageability.
Analysts see this move as a clear indicator of the administration’s intent to leverage external financing to drive public investment, amid a still-evolving global economic environment.
