Metro Manila (CNN Philippines, July 18) — The Bangko Sentral ng Pilipinas authorized $3.54 billion in foreign borrowing in the second quarter for pandemic and government infrastructure financing needs, it said on Monday.
The latest amount approved by the Monetary Council, which exercises the powers and function of the BSP, is more than $2.8 billion in the same period last year but less than $4.8 billion from January to march.
Of the $3.54 billion in loans approved, $1.75 billion is for a rail project.
In June, the Philippines secured a $4.3 billion line of credit from the Asian Development Bank for the Southern Commuter Railway project. The first $1.75 billion will be released this year.
PASB said $513.41 million will be for general funding needs, $869.72 million for pandemic response and recovery, including procurement of COVID-19 vaccines “among others,” and $405.99 million for bridge projects.
Article 20, Article VII of the Constitution requires the prior approval of the central bank for all foreign borrowings contracted or guaranteed by the Philippines.
All loan proposals made by the government, its agencies and financial institutions must be sent to the board of directors for approval in principle before the start of actual negotiations.