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