Duterte admin requests P540-B advance from BSP amid deficit due to COVID-19

The national government has filed a request for a P540-billion provisional advance from the Bangko Sentral ng Pilipinas (BSP), to serve as budgetary support amid the deficit financing due to the COVID-19 pandemic.

In a mobile message to reporters, BSP Governor Benjamin Diokno said the national government has requested for the amount to be settled before the end of the year.

"The NG has requested for fresh provisional advance of P540 billion to be settled on or before 20 December 2020, at zero interest," he said.

Diokno said the request will first be discussed by the Monetary Board (MB), which has yet to decide on the matter. The MB is scheduled to meet on its monetary policy on Thursday, October 1, but it is still unclear if the matter will be discussed by then.

According to Diokno, the request will be used as "budget support" and "deficit financing as a result of the coronavirus pandemic."

To recall, the BSP in March already purchased some P300-billion worth of securities from the Bureau of the Treasury (BTr) to support government programs against the COVID-19 pandemic.

Documents released by the BTr earlier on Wednesday showed that the national government's running debt balance was at a record P9.615 trillion as of end-August, 21.1% higher than the same month last year.

In August, President Rodrigo Duterte said the Philippines has no more funds for financial assistance, as he said the government can no longer finance food and financial assistance to those hit by the lockdowns.

Just last month, Duterte again raised the possibility of selling Philippine assets to make funds to procure vaccines against COVID-19 once available.

"If there is a thing that develops which is really good for you, mauna ako. Mag-utang ako. Magpabili ako kung saan puwede magpabili ng lupa. Ibili ko ng medicine, he said.

Duterte mentioned such a possibility in April if funds in the fight against the disease would run out.

This was reinforced by Malacañang when Presidential Spokesperson Harry Roque Jr. on July 3 said assets would be sold to ensure that the Philippines could pay for vaccines.

Diokno, however, said that Duterte was only joking when he raised such possibility.—LDF, GMA News