The Monetary Council approved a $2 billion foreign loan for the public sector in the fourth quarter of 2022

For the October-December 2022 period, the Monetary Board (MB) approved one (1) external borrowing for the public sector of $2 billion, which is 32.95 percent less than the $2.98 billion in loans approved in the same period of 2022. 2021. Relates to the issuance of bonds by the Republic of the Philippines to finance the general financing requirements of the National Government.

Meanwhile, external public sector loans approved in 2022 amounted to $10.32 billion, consisting of the following: (a) three (3) bond issues ($4.77 billion); (b) seven (7) project loans ($4.68 billion); and (c) three (3) program loans ($0.87 billion). These were 21.43 percent lower than 2021 approvals of $13.14 billion due to: (a) lower bond issuances (down 22.50 percent from $6.16 billion in 2021 to $4.77 billion in 2022); and (b) a significant decrease in program loans (down 77.52% from $3.88 billion in 2021 to $0.87 billion in 2022) which offset the increase in project loans (50.96% increase from $3.10 billion in in 2021 to $4.68 billion in 2021). 2022).

These 2022 loans will finance the national government: (a) general financing requirements (US$4.77 billion or 46.22 percent); (b) transportation projects ($3.63 billion or 35.20 percent); (c) COVID-19 response projects and programs ($1.35 billion or 13.09 percent); (d) Other infrastructure development projects ($0.57 billion or 5.49 percent).

Under Section 20, Article VII of the 1987 Constitution of the Republic of the Philippines, prior approval of Bangko Sentral ng Pilipinas (BSP), through MB, is required for all foreign loans contracted or guaranteed by the Republic of the Philippines. Similarly, Instruction Book No. 158 dated January 21, 1974 requires all proposals for external borrowing by NG, government agencies and government financial institutions to be submitted for preliminary approval by MB before actual negotiations begin. The Bills Settlement Payment Program (BSP) encourages judicious use of resources and ensures that external debt requirements are at manageable levels, to support external debt sustainability.

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