The Monetary Board of Bangko Sentral ng Pilipinas approved $3.9 billion in foreign borrowings by the Philippine government for the second quarter of 2024.
The figure was 43-percent, or $1.17 billion, higher than the $2.73 billion approved in the same period in 2023.
It said the borrowings consist of a $2-billion bond issuance and three project loans totaling $1.9 billion.
The funds will be used for $2 billion in general budget financing or refinancing of assets aligned with the government’s sustainable finance framework, and $1.9 billion for transport infrastructure projects.
The Philippine Constitution requires the Monetary Board’s prior approval for all foreign loans contracted or guaranteed by the government (Section 20, Article VII).
Letter of Instructions No. 158 from 1974 mandates that all foreign borrowing proposals by the national government, its agencies and financial institutions be submitted for the board’s approval before negotiations begin.
The central bank promotes the prudent use of these resources and ensures external debt remains manageable to maintain debt sustainability.
Foreign borrowings can impact the government’s balance of payments and the foreign exchange rate.
