$2.7 Billion In Foreign Loans Approved

The Monetary Board (MB), the policy-making body of the Bangko Sentral ng Pilipinas, has given its approval for a total of US$2.70 billion in public sector foreign borrowings in the third quarter of 2023.

These funds will be allocated for the National Government's (NG) initiatives in economic recovery, environmental protection, climate resilience, and projects in the transport and agricultural sectors.

These borrowings pertain to the Republic of the Philippines (RP) and consist of four (4) project loans amounting to US$1.95 billion and one (1) program loan totaling US$0.75 billion.

These funds will be allocated for the National Government's (NG) initiatives in economic recovery, environmental protection, climate resilience, and projects in the transport and agricultural sectors.

In accordance with Section 20, Article VII of the 1987 Constitution of the RP, the prior approval of the Bangko Sentral ng Pilipinas (BSP) through its MB is required for all foreign loans to be contracted or guaranteed by the RP.

Furthermore, Letter of Instructions No. 158 dated January 21, 1974, stipulates that all foreign borrowing proposals by the NG, government agencies, and government financial institutions must be submitted for approval-in-principle by the MB before the commencement of actual negotiations.

The BSP aims to promote the prudent use of resources and ensure that external debt requirements remain at manageable levels to support external debt sustainability.

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