THE CENTRAL BANK approved $13.1 billion in foreign borrowings last year that were meant to fund pandemic response and the government’s infrastructure projects and general financing.

This is lower by 25.9% than the $17.7 billion in foreign borrowings reviewed in 2020, the Bangko Sentral ng Pilipinas said in a statement on Wednesday.

The decline in foreign public borrowings was due to lower bond issuances and program loans, the central bank said.

Foreign borrowings that were allocated to pandemic response amounted to $5.9 billion. This includes vaccine procurement, social protection and support to economic recovery.

Another $5.9 billion was used for the national government’s general financing requirements, while $400 million will be for infrastructure projects.

In the fourth quarter alone, the BSP reviewed $3 billion in public foreign borrowings that will finance the country’s pandemic response and disaster risk reduction.

This is lower by 28.4% year on year from the $4.2 billion approvals given in the October to December 2020 period, the BSP said.

It was also smaller by 28.6% than the amount worth $4.66 approved in the third quarter.

Broken down, $2.7 billion of the borrowings will fund the pandemic response and economic recovery programs of the government, while $300 million will be allocated for disaster risk reduction.

The BSP assessed two project loans amounting to $500 million and six program loans worth $2.5 billion.

Under the 1987 Constitution, the Monetary Board is mandated to give its approval to any foreign loan agreement entered into by the National Government.

Latest data from the BSP showed the country’s external debt inched up 4.7% quarter on quarter to $105.929 billion as of end-September. This is the latest since at least 2011, bringing the external debt to gross domestic product ratio higher to 27.3% from 26.5% as of end-June. — Luz Wendy T. Noble

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