Gov’t to borrow P300 billion from Bangko Sentral next year

ABS-CBN News

Posted at Dec 08 2021 05:22 PM

MANILA - Finance Secretary Carlos Dominguez III said Wednesday the government will borrow P300 billion from the Bangko Sentral ng Pilipinas next year.

Dominguez added that the national government will also repay the full amount of its outstanding P540-billion loan from the BSP this week, ahead of the January 12, 2022 maturity date.

The Finance chief said the smaller loan signals to the market “that we are on track with the unwinding of liquidity support on firmer evidence of return to economic strength.”

The loans, which started in 2020, were meant to tide the government over while revenue generation was weak and financial markets were unpredictable amid the pandemic.

“The extension of a new P300-billion provisional advances will ensure sufficient resources for the government to safeguard this promising but still fragile recovery,” Dominguez said.

The new P300-billion loan will also have zero interest, and a three-month maturity with another three-month extension.

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