MB foreign debt approval falls 30% in first quarter
THE Monetary Board (MB) approved $2.38 billion worth of foreign borrowing by the National Government (NG) in the first quarter of 2020, down 30% year on year, according to the Bangko Sentral ng Pilipinas (BSP).
The approvals included a bond issue worth 1.2 billion euros, four project loans amounting to $493 million, as well as two program loans totaling $800 million.
The NG will use the funds for general financing requirements and projects related to infrastructure development and transport connectivity, as well as the implementation of the Philippine Competition Act.
It will also use the proceeds to generate employment and support for operations to respond to natural disasters, the BSP said.
“Of the total approved borrowing, about 9.23% or $219.8 million will fund an infrastructure flagship project (IFP) under the ‘Build, Build, Build’ program particularly the undertakings of the Project Management Consultancy of the Philippine National Railways South Long Haul Project,” the BSP said.
The MB must give prior approval for all foreign loans entered into by the national government, according to the 1987 Constitution.
Outstanding external debt rose 1.1% quarter on quarter to $83.6 billion at the end of 2019. — Luz Wendy T. Noble