THE Monetary Board has authorized US$2.87 billion in foreign borrowings for the public sector in the first quarter of 2024.
This represents a significant decrease of 48 percent compared to the $5.56 billion approved during the same period in 2023, the Bangko Sentral ng Pilipinas (BSP) said in a statement Monday, April 15, 2024.
The central bank said the approved loans consist of two project loans totaling $850 million and five program loans totaling $2.02 billion.
According to the BSP, these funds will be directed towards infrastructure development projects.
It further said public sector's program loans will support various government initiatives, including healthcare reforms ($0.91 billion), digital transformation ($0.41 billion), tax administration improvements ($0.40 billion), and development of inclusive finance ($0.30 billion).
Section 20, Article 7 of the 1987 Constitution mandates prior approval from the BSP through its Monetary Board for any foreign loans secured by the government. This ensures responsible use of resources and maintains manageable external debt levels. (KAL)