Philippines Secures $3.81 Billion in Foreign Borrowings for Q3

The Monetary Board approved $3.81 billion in public sector foreign borrowings from July to September 2024, a 36% increase compared to the $2.81 billion in the same period last year.

The approved borrowings include a $2.50 billion bond issuance, two project loans totaling $535.97 million, and a program loan amounting to $778.59 million.

The bond issuance will support the National Government’s general budget and help finance or refinance assets under the country’s Sustainable Finance Framework.

In addition to the bond, the loans will fund key projects, including $448.41 million for maritime safety and support and $87.56 million for agrarian reform.

The program loan of $778.59 million is dedicated to economic recovery, environmental protection, and climate resilience.

“These foreign borrowings aim to ensure our government has the necessary financial resources to promote sustainable development and support key sectors like agriculture and infrastructure,” the Bangko Sentral ng Pilipinas (BSP) said.

Under Section 20, Article VII of the 1987 Philippine Constitution, the BSP’s Monetary Board must approve all foreign loans contracted or guaranteed by the government. This oversight helps maintain the country’s external debt at manageable levels.

The BSP emphasized that the approval process ensures judicious use of borrowed funds, supporting the Philippines’ external debt sustainability.

The recently approved loans reflect the country’s commitment to boosting infrastructure, promoting environmental sustainability, and fostering economic resilience.