Fewer foreign loans approved by MB in the second quarter
The Bangko Sentral ng Pilipinas (BSP) reported this weekend that its Monetary Board approved fewer foreign borrowing by the national government in the second quarter of the year.
The central bank said in a statement that monetary authorities approved $ 2.80 billion in foreign borrowing from the national government from April to June.
However, the latest total is down 59% from the $ 6.84 billion approved in Q2 2020.
According to the BSP, the public sector loans consisted of a euro bond issue valued at 2.10 billion euros and a project loan valued at $ 300 million.
The foreign borrowing will be used to meet the general financing needs of the national government, as well as the response to the 2019 coronavirus disease pandemic, which includes the purchase and distribution of vaccines.
The BSP has stated that any foreign loan to be contracted or guaranteed by the Philippine government must first be approved by the Monetary Board, as provided for in the 1987 Constitution.
Likewise, Instruction Letter 158, dated January 21, 1974, states that all proposals for foreign borrowing by the national government, government agencies and government financial institutions must be submitted to the Monetary Board for approval. principle before the start of actual negotiations.
“The BSP promotes the judicious use of resources and ensures that the external debt needs are at manageable levels, in order to ensure the sustainability of the external debt”, noted the Bangko Sentral.
According to the Treasury Office.
By the end of May this year, the Philippines’ outstanding debt had reached a new high of 11 trillion pesos.
The Ministry of Budget and Management said the government’s outstanding debt could reach 11 98 trillion pesos this year.