Bangko Sentral to buy P300 billion in gov't securities to aid coronavirus fight

ABS-CBN News

Posted at Mar 23 2020 04:24 PM | Updated as of Mar 23 2020 06:25 PM

A local resident of a depressed community in Bgy. Paligsahan, Quezon City is receives relief goods being distributed by the barangay officers on March 19, 2020. Local officials in the barangay level are dipping in to their calamity funds to provide relief assistance to communities that have been dislocated by the lockdown on Metro Manila implemeted by the government to prevent the spread of COVID-19. Fernando G. Sepe Jr., ABS-CBN News

MANILA - The Monetary Board on Monday approved the purchase of P300 billion in government securities from the Bureau of Treasury to support Filipinos affected by the coronavirus pandemic, the Bangko Sentral ng Pilipinas said.

The Monetary Board authorized the BSP to purchase the government securities under a repurchase agreement with a maximum payment of 6 months, the central bank said in a statement.

"This arrangement is the most cost-effective way for us to provide an extra lifeline to the national government to support the programs to fight this pandemic," national treasurer Rosalia De Leon said.

The additional amount is intended to provide aid for families greatly affected by the enhanced community quarantine which will last until April 12, BSP governor Benjamin Diokno said. 

Diokno, who cut interest rates by another 50 basis point last Thursday, said the central bank was preparing a full arsenal monetary policies to cushion the impact of COVID-19 to the economy. -- with a report from Warren De Guzman, ABS-CBN News