Public sector foreign borrowings rose 36% in the third quarter to $3.81 billion from $2.81 billion in the same period last year, data from the Bangko Sentral ng Pilipinas (BSP) showed.
The BSP’s Monetary Board said the borrowings include one bond issuance amounting to $2.50 billion, two project loans worth $535.97 million, and one program loan amounting to $778.59 million.
“Under Section 20, Article VII of the 1987 Constitution of the Republic of the Philippines, prior approval of the Bangko Sentral ng Pilipinas, through its Monetary Board, is required for all foreign loans to be contracted or guaranteed by the Republic of the Philippines,” said the BSP.
According to the BSP, the bond issuance will be used to fund the government’s general budget financing and financing or refinancing of assets in line with the Philippines’ Sustainable Finance Framework.
The loans, meanwhile, will be used to fund projects on maritime safety and support ($448.41 million), agrarian reform ($87.56 million), and programs on economic recovery, environmental protection, and climate resilience ($778.59 million).
The BSP added that Letter of Instructions 158, dated Jan. 21, 1974, also requires the Monetary Board to approve all foreign borrowing proposals by the National Government, government agencies, and government financial institutions in principle before actual negotiations.
“The Bangko Sentral ng Pilipinas promotes the judicious use of the resources and ensures that external debt requirements are at manageable levels to support external debt sustainability,” the BSP said.