USD3.32-B Loan Approved by BSP

On Monday, the Bangko Sentral ng Pilipinas (BSP) announced that the Monetary Board approved USD 3.32 billion in medium-to-long-term (MLT) foreign borrowings for Q4 2023.

From October to December 2023, the public sector’s foreign borrowings rose by 65.8%, reaching USD3.32 billion, up from USD2 billion in the same period in 2022. This brought the total MLT foreign borrowings for the year to USD14.49 billion.

The funds aim to support national initiatives in infrastructure, agriculture, education, economic recovery, development, environmental protection, climate resilience, and COVID-19 response.

A significant portion, around USD4.07 billion, will go to public sector infrastructure projects, including transportation. USD4 billion is for general financing, USD3.07 billion for economic recovery, development, and environmental protection, and USD2.27 billion for COVID-19 response.

The BSP emphasized constitutional requirements, stating that prior approval from the BSP, through its Monetary Board, is needed for all foreign loans. The goal is to ensure responsible resource use and maintain manageable external debt levels for sustainability. (ASC)