$3.9-B Government Foreign Borrowings Approved

The Monetary Board, the policymaking body of the Bangko Sentral ng Pilipinas, has approved a total of $3.9 billion in government borrowings for the second quarter of the year.

The funds will support the National Government’s general budget financing, the financing/refinancing of assets in line with the Republic of the Philippines’ Sustainable Finance Framework ($2.0 billion), and transport infrastructure projects ($1.9 billion).

This is higher by 43 percent or $1.17 billion compared to the April to June borrowings last year.

These borrowings consist of one bond issuance amounting to $2.0 billion and three project loans aggregating to $1.9 billion.

The funds will support the National Government’s general budget financing, the financing/refinancing of assets in line with the Republic of the Philippines’ Sustainable Finance Framework ($2.0 billion), and transport infrastructure projects ($1.9 billion).

Under Section 20, Article VII of the 1987 Constitution of the Republic of the Philippines, prior approval of the Bangko Sentral ng Pilipinas, through its Monetary Board, is required for all foreign loans to be contracted or guaranteed by the Republic of the Philippines.

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

The Bangko Sentral ng Pilipinas promotes the judicious use of resources and ensures that external debt requirements are at manageable levels to support external debt sustainability.