COVID-19 BORROWINGS: $4.45 BILLION

The government has allocated $4.45 billion in foreign borrowings as a response to the Covid-19 pandemic.

The programmed foreign borrowings formed part of the Monetary Board’s (MB) approval of a total of $6.840 billion in loans that the national government has been authorized to make for the second quarter of the year.

As required by the Constitution, the government has to get prior approval from the MB, the policy making body of the Bangko Sentral ng Pilipinas, before it could enter into loan agreements.

The MB has  approved National Government (NG) foreign borrowings in the second quarter of 2020 aggregating US$6,840.995 million, higher by US$3,800.493 million (125 percent) from the second quarter 2019 level of US$3,040.502 million.

 These consist of: (a) one [1] bond issuance aggregating to US$2,350.000 million; (b) three [3] project loans amounting to US$340.995 million; and (c) six [6] program loans amounting to US$4,150.000 million.

These foreign borrowings will fund the NG’s: (a) general financing requirements for 2020 (US$2,350.000 million); (b) programs in response to the COVID-19 pandemic (US$4,450.000 million); and (c) projects in infrastructure development (US$40.995 million).