PHOTO
A security guard stands beside a logo of the Bangko Sentral ng Pilipinas (Central Bank of the Philippines) posted at the main gate in Manila, Philippines April 28, 2016. Romeo Ranoco, Reuters Image for illustrative purpose.
The Philippines' central bank Monetary Board approved $3.90 billion in public sector foreign borrowings from April to June 2024, a 43% increase from the $2.73 billion approved in the same time period last year.
The borrowings, which require approval from the Bangko Sentral ng Pilipinas under the Constitution, consist of a $2 billion bond issuance and three project loans amounting to $1.90 billion.
'These borrowings will fund the National Government's general budget financing and financing/refinancing of assets in line with the Republic of the Philippines' Sustainable Finance Framework (US$2.0 billion) and transport infrastructure projects (US$1.9 billion),' said the BSP in a statement.
The uptick in the second quarter foreign borrowings follows a decline in the first quarter when the Monetary Board greenlighted $2.86 billion in foreign loans, nearly half the $5.56 billion approved in the first quarter of 2023.
The Philippines' total external debt stood at $128.7 billion as of end-March 2024, up 2.6% from $125.4 billion at the end of 2023. Despite the increase, the BSP had said the country's external debt ration remains at "prudent levels," recording at 29% of the gross domestic product.
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