$3.54 billion government loans approved

The national government received approval from the Monetary Board to borrow $3.54 billion overseas in the second quarter, Bangko Sentral ng Pilipinas (BSP) said on Monday.

The amount was 26.4% higher than the $2.8 billion approved in April-June 2021, the central bank said in a statement, but down 26.25% from the first quarter of this year.

Approved loans included a $513.41 million bond issue, as well as three project loans totaling $2.16 billion and three program loans totaling $869.72 million.

In accordance with the 1987 Constitution, the BSP Currency Board, which determines policy, must approve foreign loan agreements entered into by the national government.

Similarly, Policy Letter 158 of Jan. 21, 1974 requires that all proposals for foreign loans by the national government, government agencies, and government financial institutions be submitted to the Monetary Board for approval in principle prior to negotiations.

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“The BSP promotes prudent use of resources and ensures that external debt requirements are at manageable levels to maintain external debt sustainability,” the central bank said.