The Monetary Board of the Bangko Sentral ng Pilipinas approved $3.81 billion in public sector foreign borrowings in the third quarter of 2024, up by 36 percent from $2.81 billion it cleared in the same period in 2023.
The BSP said these consisted of one bond issuance amounting to $2.50 billion, two project loans aggregating $535.97 million and a program loan amounting to $778.59 million.
“The bond issuance will fund the national government’s general budget financing and financing/refinancing of assets in line with the Republic of the Philippines’ Sustainable Finance Framework [$2.50 billion],” the BSP said.
The other loans will cover projects on maritime safety/support ($448.41 million) and agrarian reform ($87.56 million) and a program on economic recovery, environmental protection and climate resilience ($778.59 million).
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.
The Letter of Instructions No. 158 dated Jan. 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 commencement of actual negotiations.
The BSP said it promotes the judicious use of the resources and ensures that external debt requirements are at manageable levels to support external debt sustainability.
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