Metro Manila (CNN Philippines, April 13) — The Monetary Board (MB) approved more foreign borrowings by the government in the first quarter of 2022 to finance infrastructure projects and pandemic response.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said foreign borrowings reached $4.80 billion in the first three months, 69% higher than the $2.84 billion approvals a year ago.
The borrowings consisted of a bond issuance amounting to $2.25 billion and three project loans aggregating to $2.55 billion, the central bank added.
BSP gave a breakdown of where the new funds would go:
— $2.25 billion for the national government’s general budget financing requirements
— $2.08 billion for transportation
— $300 million to boost the pandemic war chest
— $175.10 million for infrastructure.
Under the 1987 Constitution, prior approval of the BSP, through its MB, is required for all foreign loans to be contracted or guaranteed by the Republic of the Philippines.
Similarly, Letter of Instructions No. 158 dated 21 January 1974 also requires all foreign borrowing proposals by the NG, government agencies, and government financial institutions to be submitted for approval-in-principle by the MB before the commencement of actual negotiations.
“The BSP promotes the judicious use of the resources and ensures that external debt requirements are at manageable levels, to support external debt sustainability,” it said.
