THE Bangko Sentral ng Pilipinas’ (BSP) policy-setting Monetary Board has approved $6.29 billion worth of proposed public sector foreign borrowings in the first quarter of 2025.
In a statement, the BSP said the approved public sector borrowings in the January to March 2025 period grew by 118.91% from $2.87-billion in the same period last year.
“The approved foreign borrowings have medium- to long-term maturities,” the central bank said.
“These consist of several bond issuances amounting $3.33 billion, five project loans worth $1.46 billion, and three program loans amounting to $1.50 billion,” tit added.
The BSP said that 91% of the proceeds of the bond issuances will be used to fund various budget requirements of the national government, including socio-economic programs and projects, as well as settlement of maturing financial obligations.
“The program loans are meant to fund projects on economic development and finance initiatives, while the project loans will fund initiatives in the areas of transportation and infrastructure,” it said.
The central bank said that, under the law, all foreign borrowing proposals by the national government, government agencies, and government financial institutions as well as loans to be guaranteed by the national government require prior approval of the BSP’s Monetary Board.
“This is in line with the BSP’s tasks of ensuring that the country’s foreign debt remains manageable,” it said. (GMA Integrated News)
