Gov’t Requests P540-B Financial Aid from BSP

The national government is requesting a P540 billion financial aid from the Banko Sentral ng Pilipinas (BSP).

BSP Governor Benjamin Diokno said in a Viber message that the national government will submit a formal request to the Monetary Board “soon.”

Diokno also mentioned that the proceeds of the financial aid will help restore the budget deficit caused by the ongoing pandemic.

The Philippines’ gross domestic product (GDP) is projected to drop even more due to a lack of economic activity as the coronavirus disease 2019 (COVID-19) continues to ravage the economy.

According to Business World, the government foresees the 2020 budget deficit to reach up to 9.6% of the GDP.

The government had already paid the P300 billion it loaned from the BSP in March through a repurchase agreement.

The P300 billion helped increase the budget of the government programs against the COVID-19 pandemic. (ASC)