MANILA: The central bank’s Monetary Board has approved lower government borrowings from foreign sources from January to March this year.
In a statement Monday, Bangko Sentral ng Pilipinas (BSP) said its Monetary Board has green lighted a total of USD2.87 billion foreign borrowings in the first quarter of 2024, which is 48 percent lower than the USD5.56 billion approved foreign loans in the same quarter in 2023.
‘These consist of two project loans aggregating to USD0.85 billion, and five program loans aggregating to USD2.02 billion,’ the BSP said.
The BSP said the two project loans worth USD850 million will be spent on infrastructure projects.
Meanwhile, the national government’s (NG) USD2.02-billion foreign borrowings will be spent on policy reforms on healthcare at USD910 million, USD410 million on digital transformation, USD400 million on tax administration, and USD300 million on inclusive finance development.
The amount of the NG’s foreign borrowings for the first quarter of 2024 was also lower than t
he USD3.32-billion loan in the previous quarter.
Under the Constitution, any foreign borrowings to be contracted or guaranteed by the NG shall have prior approval from the BSP through its Monetary Board.
Source: Philippines News Agency