BSP's Monetary Board OK'd $2.7B gov't foreign borrowings in Q3

The Bangko Sentral ng Pilipinas’ (BSP) Monetary Board (MB) has given its green light to the Philippine government’s foreign borrowings in the third quarter of 2023.

In a statement, the BSP said the MB approved a total of $2.70 billion external loans of the Republic of the Philippines in the July to September period.

The borrowings consisted of four project loans amounting to $1.95 billion and one program loan worth $750 million.

“These borrowings will fund the national government’s program on economic recovery, environmental protection and climate resilience, as well as projects for the transport and agricultural sectors,” the BSP said.

Under Section 20, Article VII of the 1987 Constitution, prior approval of the BSP, through its MB, is required for all foreign loans to be contracted or guaranteed by the Philippine government.

Similarly, Letter of Instructions No. 158 dated 21 January 1974 also requires all foreign borrowing proposals by the national government, government agencies, and government financial institutions to be submitted for approval-in-principle by the MB before commencement of actual negotiations.

“The BSP promotes the judicious use of the resources and ensures that external debt requirements are at manageable levels, to support external debt sustainability,” the central bank said. —KG, GMA Integrated News