MANILA - The Monetary Board has approved a total of $2.84 billion of public sector foreign borrowings in the first quarter of 2021, the Bangko Sentral ng Pilipinas said Monday.
Project loans amounting to $1.44 billion, one program loan worth $600 million and 2 bond issuance amounting to $798 million compose the total public sector foreign loans for the period, the central bank said in a statement.
The BSP said the total is 19.36 percent higher compared to the same period in 2020 of $2.38 billion.
Foreign borrowings will fund the following:
• the national government's COVID-19 response programs such as vaccine procurement and distribution ($900 million)
• refinancing of existing obligations and general financing requirements ($798 million)
• disaster resilience ($600 million)
• social protection ($300 million)
• public transport improvement ($138 million)
• maritime safety ($105 million)
"The BSP promotes the judicious use of the resources and ensures that external debt requirements are at manageable levels, to support external debt sustainability," it said.
Philippine laws mandate the prior approval for all foreign loans by the BSP through the monetary board.