MONETARY BOARD (MB) approvals for public-sector foreign borrowing declined in 2024 amid a dearth of program and project loans, the Bangko Sentral ng Pilipinas (BSP) said.
The central bank said in a statement that approved public-sector foreign borrowing amounted to $13.68 billion last year, down 5.56%, across 21 approved applications.
The approvals consisted of 11 project loans amounting to $5.32 billion, two bond issues ($4.5 billion) and eight program loans ($3.86 billion).
The BSP said the decline in program and project loans offset the rise in bond issues.
Program loans fell 20% to $3.86 billion in 2024. Meanwhile, project loans were down 6.2% to $5.32 billion.
On the other hand, global bond offerings rose 12.5% to $4.5 billion.
In the fourth quarter, the MB approved six medium-to-long-term foreign borrowings worth $3.21 billion, down 3.35% year on year.
“The 2024 borrowings will fund the National Government’s general financing requirements ($4.50 billion or 32.89%); infrastructure projects, including transportation ($4.35 billion or 31.79%); economic recovery and development through policy reforms, environmental protection and climate resilience projects and programs ($2.98 billion or 21.79%),” it said.
Borrowing will also finance education and healthcare projects and programs ($1.36 billion or 9.94%) and agrarian reform and maritime safety projects ($490 million or 3.59%).
Under the constitution, the Monetary Board is required to approve any foreign loan agreements entered into by the National Government.
The BSP must also approve in principle any foreign borrowing proposals by the National Government, government agencies and government financial institutions before actual negotiations.
“The Bangko Sentral ng Pilipinas promotes the judicious use of the resources and ensures that external debt requirements are at manageable levels, to support external debt sustainability,” it added. — Luisa Maria Jacinta C. Jocson
