The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) has approved a total of US$1.10 billion in proposed public sector foreign borrowings for the third quarter of 2025, marking a 71.13 percent decline from the US$3.81 billion approved in the same period last year.
According to the BSP, the approved loans—classified as medium- to long-term borrowings—consist of two project loans aimed at supporting social protection initiatives.
Public sector foreign borrowings approved by the BSP in the first three months this year totaled US$6.29 billion. Another US$4.89 billion was approved in the second quarter, bringing the total to US11.18 billion in the first six months, based on data.
The BSP emphasized that, under Section 20, Article VII of the 1987 Constitution and Letter of Instructions No. 158 (1974), all foreign borrowing proposals by the public sector or those guaranteed by the national government require prior approval from the Monetary Board. This oversight ensures that the country’s external debt remains manageable and sustainable.
Economists noted that the significant drop in new borrowings may reflect the government’s more cautious approach to external financing, amid efforts to maintain fiscal discipline and manage foreign exchange and debt servicing pressures as global interest rates remain elevated.
