2 hours Ago By Rappler.com
(This is a press release from the Bangko Sentral ng Pilipinas.) MANILA, Philippines – For the period July to September 2024, the Monetary Board approved a total of US$3.81 billion of public sector foreign borrowings, 36% higher than the $2.
81 billion approved in the same period in 2023. These consist of one bond issuance amounting to $2.50 billion, two project loans aggregating $535.
97 million, and one program loan amounting to $778.59 million. The bond issuance will fund the national government’s general budget financing and financing/refinancing of assets in line with the Philippines’ Sustainable Finance Framework ($2.
50 billion). Meanwhile, the other loans will cover projects on maritime safety/support ($448.41 million) and agrarian reform ($87.
56 million) and a program on economic recovery, environmental protection and climate resilience ($778.59 million). Under Section 20, Article VII of the 1987 Constitution, prior approval of the Bangko Sentral ng Pilipinas (BSP), through its Monetary Board, is required for all foreign loans to be contracted or guaranteed by the Republic of the Philippines.
Similarly, Letter of Instructions 158 dated January 21, 1974 requires all foreign borrowing proposals by the national government, government agencies and government financial institutions to be submitted for approval-in-principle by the Monetary Board before 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. – Rappler.
com.
