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BSP approves P540-B loan for Philippines' deficit spending amid COVID-19

The Philippine government has secured another loan from the Bangko Sentral ng Pilipinas (BSP), this time worth P540 billion, to provide budgetary support amid the deficits due to the COVID-19 pandemic.

In a mobile message to reporters, BSP Governor Benjamin Diokno said the BSP approved the request for the P540-billion loan on Thursday, October 1.

"The Monetary Board approved today the National Government's request for a new tranche of provisional advances in the amount of P540 billion," he said.

Diokno on Wednesday said the administration requested the fresh loan as "budget support" and "deficit financing as a result of the coronavirus pandemic."

The new loan follows the P300 billion lent by the central bank to the government in March through the form of securities.

"The Bureau of Treasury has fully settled the previous P300 billion repo on 29 September 2020," Diokno said Thursday.

Documents released by the Bureau of the Treasury on Wednesday showed that the national government's running debt balance was at a record P9.615 trillion as of end-August, 21.1% higher than the same month last year. -NB, GMA News