THE Bangko Sentral ng Pilipinas (BSP) has okayed $3.54 billion in foreign borrowings in the second quarter for the government’s pandemic and infrastructure financing needs.
The latest amount approved by the Monetary Board (MB), is higher than $2.8 billion during the same period last year but lower than $4.8 billion from January to March, the central bank said on Monday.
Of the $3.54 billion approved loans, $1.75 billion is allotted for a railway project.
In June, the Philippines secured a $4.3-billion credit line from the Asian Development Bank for the South Commuter Railway Project. The first $1.75 billion will be released this year.
The BSP said $513.41 million will be for general financing requirements, $869.72 million for pandemic response and recovery including the purchase of Covid-19 vaccines, among others, and $405.99 million for bridge projects.
Section 20, Article VII of the Constitution requires prior approval from the central bank for all foreign loans contracted or guaranteed by the Philippines.
All borrowing proposals made by government, its agencies and its financial institutions must be sent to the MB for approval-in-principle before starting actual negotiations.