The Monetary Board of the Bangko Sentral ng Pilipinas approved six public sector medium-to long-term foreign borrowings amounting to $3.21 billion in the fourth quarter of 2024.
The amount was 3.35 percent, or $110 million, lower than the $3.32-billion foreign borrowings approved in the same period of 2023.
This brought approved public sector foreign borrowings to 21 in 2024, amounting to $13.68 billion. These included two bond issuances ($4.50 billion); 11 project loans ($5.32 billion); and eight program loans ($3.86 billion).
Data showed that the 2024 foreign borrowings went down by 5.56 percent, or $810 million from the 2023 approvals of $14.49 billion.
This was due to decrease in program loans, from $4.82 billion in 2023 to $3.86 billion in 2024; and project loans, from $5.67 billion in 2023 to $5.32 billion in 2024. This offset the increase in bond issuance, from $4 billion in 2023 to $4.50 billion in 2024.
The 2024 borrowings will fund the national government’s general financing requirements (S$4.50 billion); infrastructure projects, including transportation ($4.35 billion); economic recovery and development through policy reforms, environmental protection and climate resilience projects and programs ($2.98 billion); education and healthcare projects and programs ($1.36 billion and agrarian reform and maritime safety projects ($0.49 billion).
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.
Letter of Instructions No. 158 dated Jan. 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 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.
