MANILA, Philippines — The Monetary Board approved new borrowings by the government in the second quarter, targeted towards financing various railway projects around the country.
The Bangko Sentral ng Pilipinas said in a statement on Friday that these public sector foreign borrowings totalling $2.73 billion in the second quarter were lower by 23% compared to the same period a year ago.
These loans supplement the national government’s financing requirements, which include funding for socioeconomic programs and infrastructure projects.
The amount comprised three loans granted by the Japan International Cooperation Agency.
Majority of the country’s borrowings come from domestic creditors in order to shield the national government from the volatile swings of exchange rates, among others.
Foreign loans require the approval of the BSP, through the Monetary Board, before the national government guarantees it.
As it is, BSP data showed the country’s foreign debt surged to an all-time high of $118.81 billion in the first quarter. — Ramon Royandoyan