BSP approves $3.81-B in foreign borrowings for Q3 2024

The Bangko Sentral ng Pilipinas (BSP) has given the green light to public sector foreign borrowings totaling USD 3.81 billion for the third quarter of 2024, reflecting a 36% rise from the USD 2.81 billion approved in the same period last year.

According to data released by the BSP on Tuesday, the approved borrowings comprise a mix of bond issuances and loans, including a USD 2.50 billion bond issuance, two project loans worth a combined USD 535.97 million, and a program loan amounting to USD 778.59 million.

The bond issuance is intended to support the government's budget and finance projects in line with the Philippines' Sustainable Finance Framework. Meanwhile, the project loans will fund initiatives in maritime safety (USD 448.41 million) and agrarian reform (USD 87.56 million). The program loan will back efforts in economic recovery, environmental protection, and climate resilience.

The BSP emphasized that under Section 20, Article VII of the 1987 Constitution, all foreign loans contracted or guaranteed by the Philippine government must receive prior approval from the Monetary Board. Additionally, Letter of Instructions 158 mandates that all foreign borrowing proposals by the National Government and related institutions must receive preliminary approval before negotiations begin.

The BSP reiterated its commitment to responsible borrowing practices, ensuring that the country's external debt remains at manageable levels to maintain debt sustainability.