BSP-Approved Foreign Borrowings Surge in Q1 2025

The Monetary Board of the Bangko Sentral ng Pilipinas approved US$6.29 billion worth of proposed public sector foreign borrowings in the first quarter of 2025, up 118.91 percent from US$2.87 billion in the same period last year.

The approved foreign borrowings have medium- to long-term maturities.

These consist of several bond issuances amounting to US$3.33 billion, five project loans worth US$1.46 billion, and three program loans totaling US$1.50 billion.

Proceeds from the bond issuances will be used to fund various budget requirements of the National Government, including socio-economic programs and projects, as well as the settlement of maturing financial obligations.

The program loans are intended to finance projects focused on economic development and financial initiatives, while the project loans will support efforts in transportation and infrastructure development.

Under the law, all foreign borrowing proposals by the National Government, government agencies, and government financial institutions, as well as loans to be guaranteed by the National Government, require prior approval from the BSP’s Monetary Board.

This requirement aligns with the BSP’s mandate to ensure that the country’s foreign debt remains at a manageable level.

Approval guidelines are stipulated under Section 20, Article VII of the 1987 Constitution of the Republic of the Philippines and under Letter of Instructions No. 158, dated Jan. 21, 1974.