The Bangko Sentral ng Pilipinas (BSP) approved US$4.89 billion in proposed public sector foreign borrowings in 2Q 2025, reflecting a 25.4 percent increase from US$3.90 billion in the same period last year.
The second-quarter borrowings, composed of medium- to long-term loans, include US$4.14 billion for eight project-based loans and US$0.75 billion across three program loans. Funds will support infrastructure, climate resilience, health, and civil service reforms.
According to the BSP, the cumulative foreign borrowings for the first half of 2025 reached US$11.18 billion, building on US$13.68 billion in full-year 2024 approvals.
The central bank underscored that all foreign borrowing proposals by the public sector require prior clearance from the BSP’s Monetary Board to ensure external debt sustainability. The increase in foreign financing signals continued macroeconomic support for development initiatives, but also highlights the importance of prudent debt management to preserve fiscal and external stability.
